CCB says pay cuts for executives in line with global standard
Huang Yi says that any reduction in pay at state banks will be in line with international practice
China Construction Bank executives acknowledged yesterday that senior executives at mainland state banks could face pay cuts in line with recent government reforms but pushed back against reports that general staff salaries would be slashed.
"Remuneration packages at state-owned enterprises have been an area of concern for quite some time, especially for those at the very top, including myself. I also have to face a salary cut, right?" CCB executive vice-president Huang Yi said at a press conference in Hong Kong in response to questions on pay cuts reported by mainland media.
"We are talking about senior management only. Other staff members won't be affected."
Packages at state-owned enterprises have been an area of concern
On Friday, mainland media reported that China's second-biggest lender would enact a so-called 5321 plan, denoting a 50 per cent cut to executive pay, a 30 per cent cut for department heads and 20 per cent for section heads. General staff salaries would be reduced by 10 per cent.
In late August, mainland media reported that the central government passed a measure on reducing compensation for employees of state-owned firms.
The measure called for a 30 per cent reduction in the pay of a top executive or capping it at 600,000 yuan (HK$757,000).
Pay cuts for top executives would be in line with international standards, Huang said.