Zhongxin Jingwei, March 3 (Ma Jing) On March 30, three securities firms, Guotai Junan, China Galaxy and Zhongyuan Securities, successively released their 29 annual reports. The data shows that the performance of the three securities companies is declining, with Zhongyuan Securities falling by nearly 2022% in terms of net profit alone, Guotai Junan and China Galaxy falling by 3.80% and 23.35% respectively.

Zhongxin Jingwei noticed that in 2022, Centaline Securities and China Galaxy will earn less money, and employees will receive less wages. Among them, the per capita salary of Zhongyuan Securities dropped from 49,50 yuan to 38,66 yuan; the per capita salary of China Galaxy was 2,1666 yuan less than the previous year, which is equivalent to 7,7 yuan less per month. Although Guotai Junan's per capita salary increased by 18%, the total compensation paid to employees was <> million yuan less than the previous year.

2022 brokerages, including China Merchants Securities, which previously announced their 5 results, also experienced salary cuts to varying degrees. But in this wave of brokerage "salary cuts", who is the bigger decline for executives and employees?

Both securities merchants saw their salaries drop by more than 30%

Since 2022, there has been news of salary cuts by brokerages from time to time, but basically they have not been hammered. With the disclosure of 2022 financial reports, the answer to whether securities companies will cut salaries is gradually revealed.

At present, 8 listed securities firms, namely Founder Securities, Cinda Securities, China Merchants Securities, Guoyuan Securities, Guolian Securities, Guotai Junan, Zhongyuan Securities, and China Galaxy, have disclosed their 2022 annual reports.

According to the Flush iFinD data, in terms of per capita salary in 2022 (per capita salary = increase in employee compensation payable in the current period / total number of employees, including basic salary, bonuses, benefits, allowances, etc.), among these 8 brokerages, Guotai Junan ranked first with 79,90 yuan, which is equivalent to 6,66 yuan per month. It is followed by China Galaxy, with an average annual salary of 54,26 yuan. The average salary of the four securities merchants represented by China Merchants Securities is 4,40 yuan to 50,38 yuan. Cinda Securities and Zhongyuan Securities are close, at about <>,<> yuan.

Generally speaking, the salary of securities firms has a strong positive correlation with the market, and the performance is not good, and the salary will be less. After communicating with a number of industry insiders, I learned that the non-basic salary part of the salary system of securities firms exceeds at least 50% of the total salary, especially the investment bank employees, which are highly linked to the project and have the characteristics of "not opening for three years, opening for three years".

The data shows that 5 of the above securities companies have a decline in net profit growth and per capita salary, while Founder Securities and Cinda Securities, as the only two securities firms to achieve positive growth, have also experienced a decline in per capita salary.

From the perspective of decline, China Merchants Securities and Cinda Securities fell the most, about 33%; The smallest declines were China Galaxy and Founder Securities. Although the per capita salary of Guotai Junan increased by 5,1 yuan, from the perspective of cost, Guotai Junan increased by more than 70 employees compared with the previous year, but the total salary that should be paid to employees was 7 million yuan less, and the cost of expenditure was reduced.

Brokerage salary cuts, executives and ordinary employees who are more injured?

Talking about pay per capita often makes the average employee shout that "averaged by a few high salaries." A person in charge of the investment trading business of a medium-sized brokerage based in Shanghai once bluntly told Zhongxin Jingwei that the financial industry is not a high salary, most of it is averaged, and the high salary is only a few people in individual positions. Especially the top brokers and small and medium-sized brokers, the difference is obvious.

This time the brokerage "cut salary", whose salary was reduced, management or ordinary employees?

The data shows that the total annual remuneration of the management of the above-mentioned securities firms accounts for less than 3% of the remuneration payable to employees. Due to the new listing of Cinda Securities this year, there is no complete data in previous years, excluding the remaining 7 brokers, the annual salary of the management of Guolian Securities increased by 5.66%, while the other securities companies all declined, ranging from 6% to 29%.

For example, President Wang Song's salary was 2022.129 million yuan, a decrease of 65.123 million yuan, and the salary of Director Secretary Yujian was 54.352 million yuan, a decrease of 50.163 million yuan; among the chairmen who are still performing their duties on full salary, Huo Da, chairman of China Merchants Securities, received an annual salary of 86.2022 million yuan in 349, a decrease of 86,38 yuan.

The total remuneration of ordinary employees can be obtained by further subtracting management remuneration from the total remuneration payable to employees. A comparison over time shows that the total remuneration of Guoyuan Securities, China Galaxy and Founder Securities is much higher than that of ordinary employees, while China Merchants Securities, Zhongyuan Securities and Guotai Junan are the opposite. To some extent, this indicates that the salary reduction of ordinary employees of the latter three brokerages is higher. Guolian Securities has cut the salary of ordinary employees, and the management has raised salary.

Regarding how securities firms can establish a long-term incentive mechanism and a stable salary system, Zhao Xijun, co-dean of the China Capital Market Research Institute of Chinese Minmin University, once stressed in an interview with Zhongxin Jingwei that it is important not only to motivate capable employees to create value, but also to consider the characteristics of the industry itself, and the income gap in the industry should not be too large as much as possible.

He believes that the market-oriented remuneration mechanism is the most basic principle; The second is to consider the efforts of employees, which must be comparable, and there should be no significant gap under the same effort, and it should be distributed according to work. Finally, it is necessary to consider the social environment and market environment and achieve a balance with the value creation drive. (Zhongxin Jingwei APP)