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Celine Sun

Top executives in China’s state-owned banks each made up to about 1.2 million yuan (HK$1.5 million) in remunerations in 2014, according to figures released by the lenders, ahead of a cap on their earnings imposed by the government this year.
Annual results released by the four major state-owned banks showed that their chairmen and presidents earned on average between 1 million yuan and 1.2 million yuan in 2014, slightly higher than the previous year, although the banks’ profit growth slowed.
The higher earnings come to an end this year with a cap on remuneration for state-owned enterprise executives taking effect in January.
The South China Morning Post was among the first media to report last August that their payments would be limited.
The central government later announced that a cap of 600,000 yuan in annual remuneration would be imposed for top executives at state-owned enterprises.
It means officials are expected to see their salary shrink by as much as 40 per cent this year.
Tian Guoli, chairman of the Bank of China, was paid 1.18 million yuan last year, higher than other top executives in the big four banks.
The president of the bank, Chen Siqing, earned 1.08 million yuan.
Wang Hongzhang, the chairman of China Construction Bank, and Zhang Jianguo, the president of the lender, received 1.15 million yuan and 1.13 million yuan each.
The chairman and president of the Industrial and Commercial Bank, Jiang Jianqing and Yi Huiman, earned 1.14 million yuan and 1.09 million yuan.
Zhang Yun, president of the Agricultural Bank of China, was paid 1.07 million yuan, while its chairman Liu Shiyu received about 190,000 yuan as he only took up the post in December 2014.
The salary gap between the state-owned and private shareholding banks is increasing.
Shao Ping, the president of Shenzhen-based Ping An Bank, was the top earner among all executives in 16 listed mainland banks last year, with an annual remuneration of 8.35 million yuan. 
Salaries of other senior executives in Ping An Bank ranged from 6 million yuan to 7.1 million yuan, also higher than other banks.
This was partly because of the bank’s strong performance last year as its net profit surged 30 per cent to 19.8 billion yuan for the period.
The gap between the top executives remuneration in state-owned and private banks may be growing, but the difference among ordinary employees’ earnings is not that great, figures suggest.  
China CITIC Bank’s annual results show it total labour costs were 21.1 billion yuan last year, 19 per cent higher than in 2013.
The bank had 50,735 employees by the end of last year, which means each of them was paid an average of 416,000 yuan.
Similarly, the average salary based on the same method of calculations at Ping An bank was 402,000 yuan, while at Agricultural Bank of China it was 225,000 yuan.  
Average pay in all but three listed banks increased last year.
The three banks were Shanghai Pudong Development Bank, China Industrial Bank and Bank of Ningbo.
Industry observers said the newly-enforced salary cap and mounting competition in the banking sector and pressures on staff were driving more people to leave the traditional banking system to look for better career opportunities, especially in online financing companies.
 


China state-owned bank chiefs’ pay tops 1 million yuan each ahead of earnings cap

Bank of China's chairman Tian Guoli was the biggest earner among executives at the big four banks on the mainland last year, according to figures released by the lenders. Photo: Jonathan Wong

Bank of China's chairman Tian Guoli was the biggest earner among executives at the big four banks on the mainland last year, according to figures released by the lenders. Photo: Bloomberg

Bank of China 2014 results surpass expectations; BOC Hong Kong also reports growth

The Bank of China branch in Beijing. Photo: Reuters

Chinese banks' earnings results miss market targets

Bank of Communications says net profit grew 1.5 per cent to 18.97 billion yuan in the first three months of the year. Photo: Bloomberg

News

China

Money & Wealth

Curbs on remuneration imposed by government this year, but state lenders top executives' pay lags well behind counterparts in private sector


Top executives in China’s state-owned banks each made up to about 1.2 million yuan (HK$1.5 million) in remunerations in 2014, according to figures released by the lenders, ahead of a cap on their earnings imposed by the government this year.


China state-owned bank chiefs’ pay tops 1 million yuan each ahead of earnings cap

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Curbs on remuneration imposed by government this year, but state lenders top executives' pay lags well behind counterparts in private sector

Curbs on remuneration imposed by government this year, but state lenders top executives' pay lags well behind counterparts in private sector