CBRC: Bank executive pay and Risk index linkage

Yesterday, the CBRC issued "Commercial Bank prudent pay supervision guidelines", clearly linked to bank executive compensation and capital adequacy ratio and other risk indicators, while stipulating that executive performance compensation should not be higher than the basic salary 3 times times, performance pay deferred payment. The basic pay is no higher than 35% of the total pay before the Treasury stipulated that state-owned financial institutions senior executives pre-tax income of not more than 2.8 million yuan.　　Industry insiders said that the "guidelines" issued, the limit of executive pay will be extended from the state-owned banks to joint-stock banks, can not determine whether the bank executive pay will be generally reduced, but can avoid bank executives regardless of asset quality blindly expand business.　　The guideline stipulates that the basic remuneration of commercial banks is generally not higher than 35% of their total remuneration, does not encourage commercial banks to set up guaranteed bonuses, and if there is a real need, the guaranteed bonuses apply only to the first year of new hires, and executive performance is not paid more than 3 times times the basic salary. In addition, the bank executives and employees who have important impact on the risk, the performance of more than 40% of the pay should be deferred payment, and the duration of the deferred payment is generally not less than 3 years, while the main senior managers of performance compensation for the deferred payment ratio should be higher than 50%, the conditions should be to reach　　In the deferred payment period must follow the principle of division, not before the light. Stop blindly expand the business leaving the staff can still be traced to Li Diewu, a fellow securities and banking researcher, said some bank executives ignore risk and only consider performance to push the business forward, and in the past, when bank executives were better off, they could get bonuses, take away bonuses when executives resigned, and 1-2 years later they could turn sour.　　The move is aimed at preventing bank executives from blindly expanding their businesses regardless of asset quality. The reporter noted that, for the bank has been terminated, performance pay may still be deferred recourse.　　The guideline states that commercial banks should formulate performance compensation deferred recourse, if the risk loss in the duties of its senior management and related staff is exceptionally exposed within the stipulated time limit, it is entitled to recover all the performance remuneration paid within the corresponding period and to pay all unpaid portions, which shall apply equally to the departing person. 1 indicators of linked risk indicators were not met, in that year, the whole line of performance per capita should not exceed the level of the previous year, 2 failed to meet the current performance of the entire line on the basis of the last year, the performance of the executive pay will be significantly higher than the average float; 3 substandard, except in the second case adjustment, The total amount of basic remuneration will not be increased in the next year.