China Bankers Face Deeper Pay Cuts in ‘Common Prosperity’ Push
- Securities firms, money managers draft compensation plans
- Aim is to reduce pay gap between senior and junior staff
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Senior executives across China’s $58 trillion financial system are facing additional pay cuts as firms from investment banks to mutual funds weigh options to comply with President Xi Jinping’s “common prosperity” drive.
At least four of the biggest state-controlled securities firms and asset managers are drafting plans to narrow the compensation gap between senior and junior staff, according to people familiar with the matter, who asked not to be identified as the information is private. Some may submit proposals to regulators in the next few months, the people said.