
The "Reform Plan for the Salary System of the Heads of Central Management Enterprises" was implemented in 72 key central enterprises this year. According to statistics, among the 48 central enterprises that have published annual reports recently, there are 18 listed companies with general managers and presidents as samples, and their salaries have decreased year-on-year, and 4 have increased by over 100% year-on-year. The average salary of general managers of 48 listed companies rose from 970,000 yuan in 2014 to 1.07 million yuan in 2015.
It has been controversial for leaders of central enterprises to get super-high salaries like executives of foreign companies and private enterprises. Recently, listed companies have released annual reports one after another, and the salary of senior executives of central enterprises has become a hot spot in the market. Since January 1, 2015, the Reform Plan of the Salary System for the Heads of Central Management Enterprises has been implemented in 72 key central enterprises. At the beginning of the reform, the vice minister of the Ministry of Human Resources and Social Security said that after the reform, the salary level of the heads of most central management enterprises will decline, and some will fall by a larger margin. Then, judging from the published financial report, has the salary reform of central enterprises achieved the expected results over the past year or so? What problems are reflected in the change of executive compensation in central enterprises?
The average annual salary of general managers of 48 central enterprises exceeds one million.
According to media statistics, among the 48 central enterprises that have published annual reports under the supervision of the State Council State-owned Assets Supervision and Administration Commission, with the general manager and president as samples, there are 18 listed companies whose salaries have decreased year-on-year, and 4 have increased by over 100% year-on-year. The average salary of general managers of 48 listed companies rose from 970,000 yuan in 2014 to 1.07 million yuan in 2015.
Judging from the ups and downs, the biggest decline is Guodian Nanzi. In 2014, the annual salary of Huang Yuanhong, general manager of Guodian Nanzi, was 518,000 yuan. In June 2015, Huang Yuanhong, general manager of Guodian Nanzi, resigned. Since then, Guodian Nanzi has welcomed a new general manager, Ying Guangwei. According to the annual report, its annual salary in 2015 was 164,000 yuan, which was 68.34% lower than that of its predecessor. The biggest increase is Zhenhua Heavy Industry. In 2015, the annual salary of Huang Qingfeng, president of Zhenhua Heavy Industry, was 894,000 yuan, while in 2014, the salary of former president Lu Jianzhong was only 205,300 yuan.
In terms of absolute salary, the highest salary is CIMC. In 2015, the salary of Mai Boliang, president of CIMC, was as high as 6.373 million yuan, ranking first among the top executives of major central enterprises. Compared with the salary of 9.98 million yuan in 2012, it has declined, but it has been the top three in the A-share salary list in the past three years. Whether it is the former general manager or the current general manager, the annual salary of the senior executives of Yunnan Copper, a subsidiary of Chinalco, is extremely low among listed companies. The current general manager Gao Guichao’s annual salary in 2015 is 60,000 yuan, and his predecessor Shen Nanshan’s annual salary in 2014 is 157,500 yuan. Some netizens even ridiculed that this income is not as good as a courier.
The salary of petrochemical executives is "halved"
According to the salary reform plan implemented in early 2015, the salary of the heads of central enterprises will be composed of two parts: past basic annual salary and performance annual salary, and adjusted to three parts: basic annual salary, performance annual salary and term incentive income. The salary of central enterprises is differentiated and officially bid farewell to the "big pot rice". Then, judging from the published annual report, does the change of executive compensation of central enterprises conform to the spirit of reform?
Taking Sinopec Shuangxiong as an example, according to the 2015 annual report, the salary of Sinopec President Li Chunguang decreased from 972,900 yuan in 2014 to 525,000 yuan in 2015, a decrease of 46%; The salary of Wang Dongjin, president of PetroChina, decreased from 1.137 million yuan to 734,000 yuan, a decrease of 35.44%. In 2015, when international oil prices fell precipitously, Sinopec’s net profit decreased by 11.4% year-on-year to 43.3 billion yuan. The net profit of PetroChina fell by nearly 70% year-on-year, only 35.6 billion yuan, which was lower than the 100 billion yuan mark for the first time in ten years.
Presidents of five major banks bid farewell to millions of salaries.
Another obvious change in executive compensation is banks. Recently, the annual reports of five state-owned banks that have established diplomatic relations between workers, peasants and China have been disclosed one after another, and the rise and fall of bank employees’ compensation has also surfaced. Different from the substantial increase in the salary of commercial executives, the overall salary of bank executives declined in 2015, and it has completely bid farewell to the million-dollar salary.
The Beijing Youth Daily reporter noted that in the disclosure of the annual reports of the five major state-owned banks, it was all stated that "according to the relevant regulations of the state, from January 1, 2015, the remuneration of the chairman, president, supervisor and other deputy heads of the Bank was implemented in accordance with the Interim Measures for the Administration of Remuneration of Heads of Central Financial Enterprises, and the Bank has paid salaries accordingly".
According to the 2015 annual report, the net profit attributable to the parent company of the five major banks exceeded 920 billion yuan, equivalent to earning 2.5 billion yuan every day. Although the profit scale was "the legendary swordsman", the net profit fell into a "turtle speed" growth. According to the annual report of the five state-owned commercial banks that established diplomatic relations between workers, peasants and China, their net profit increased by 0.5%, 0.7%, 0.74%, 0.28% and 1.5% respectively in 2015. After years of double-digit high-speed growth, the growth rate is the slowest in the last decade, and banks have bid farewell to the era of "lying down to make money".
The annual salary of the presidents of the five major state-owned banks in 2015 can almost be called "waist cutting". Among them, Yi Huiman, President of Industrial and Commercial Bank of China, paid 546,800 yuan in 2015, compared with 1,089,000 yuan in the previous year, a decrease of 49.79%; Chen Siqing, President of China Bank, paid 613,300 yuan in 2015, down 43.38% from 1,083,200 yuan in the previous year; Wang Zuji, President of China Construction Bank, paid RMB364,600 in 2015, a significant decrease of 67.79% compared with the previous year (President Zhang Jianguo paid RMB1,132,000 in the previous year); Peng Chun, President of Bank of Communications, paid 525,700 yuan in 2015, down 47.83% from 1,007,600 yuan in the previous year. Zhang Yun, the president of the Agricultural Bank of China, was punished for violating discipline, but no statistics were made. The pre-tax salary of Cai Hua Xiang and Lou Wenlong, the vice presidents of the Agricultural Bank of China, was 977,400 yuan in 2014, and it was 522,100 yuan in 2015, a decrease of 46.58%.
Text/reporter Zhu Kaiyun
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The income of employees of listed banks remains unchanged as a whole.
At present, 10 listed banks have published their 2015 annual reports. According to the data of the annual report, in the past year, due to the salary limit of central enterprises and the decline in profits, the salaries of senior executives such as chairmen and presidents of banks have shrunk significantly, and some have even been cut by half, but the per capita income of employees is basically the same as that of the previous year, with little increase and decrease, and the performance is stable.
According to the calculation results of professional institutions, except for China Merchants Bank, China CITIC Bank and Bank of Communications, the per capita salary of other banks is within 4% year-on-year, which is basically the same. The per capita salary of joint-stock banks is mostly between 300,000 and 400,000 yuan, while that of the top five state-owned banks is between 200,000 and 300,000 yuan, and the joint-stock banks beat the state-owned banks completely.
Specifically, Ping An Bank has the highest per capita salary of 418,100 yuan, an increase of 3.31% over 2014; The second place is Minsheng Bank, with 404,000 yuan, an increase of 3.22% over 2014; Everbright Bank ranked third with 359,700 yuan, a decrease of 2.34% over the previous year.
The per capita salary of the five major state-owned banks is still significantly lower than that of the joint-stock banks, among which the highest bank of communications is 274,700 yuan, up by 7.73% year-on-year, which is 183,400 yuan less than that of China Merchants Bank, which is the least among the joint-stock banks. Followed by China Bank, 259,800 yuan, an increase of 2.36% over the previous year; The third place is CCB, with 247,000 yuan, a year-on-year decrease of 0.56%; ICBC ranked fourth with 245,900 yuan, a year-on-year decrease of 0.77%; The last one was Agricultural Bank of China, which was 221,500 yuan, a year-on-year decrease of 3.40%.
It is worth noting that the total wages and benefits of China Merchants Bank and CITIC Co., Ltd. have fallen sharply, with a decrease of 15.32% and 19.96% respectively. However, according to industry analysts, the main reason for the sharp decline is the delayed payment of performance pay, which does not mean that China Merchants Bank and China CITIC Bank are significantly reducing their salaries.
China Merchants Bank issued a document in April last year, which will implement a deferred payment risk premium system in domestic branches, that is, a certain proportion of the performance pay of employees in risk-related positions will be withdrawn, and the amount will be paid year by year according to the risk release of the project, with a withdrawal ratio of 10%, covering ordinary employees in markets, compliance and operations. The direct consequence of this mechanism is that the income of bank employees decreased in that year.
Of the 16 A-share listed banks, 10 have published their annual reports, including five state-owned banks that have established diplomatic relations between workers and peasants, and five joint-stock commercial banks, namely China Merchants Bank, Minsheng Bank, CITIC Bank, China Everbright Bank and Ping An Bank.
Text/Beijing Youth Daily reporter Cheng Wei