CBRC stipulates that bank executives ' performance pay must not exceed 3 times times the basic salary

BEIJING, March 10 (Xinhua) The CBRC announced on 10th that the implementation of the guidelines on prudent remuneration for commercial banks (hereinafter referred to as "the guideline") clearly stated that "the performance remuneration of the main principals of commercial banks should be determined within 3 times times of the basic remuneration".　　　　Experts pointed out that the release of the new regulations will be conducive to the pay in the commercial banks corporate governance and risk control of the guiding role, and promote sound business banking.　　The main responsible person's performance pay should be within 3 times times of the basic salary. According to the guideline, the performance remuneration of the main principals of commercial banks shall be determined within 3 times times of the annual operating assessment results. It is clear that the guidelines do not encourage commercial banks to set up guaranteed bonuses, and if they do, the guaranteed bonuses will apply only to the first-year salary of newly hired employees.　　The basic remuneration of commercial banks is generally not higher than 35% of the total remuneration. In terms of pay, the CBRC requests that senior executives of commercial banks and employees with significant impact on risk should adopt a deferred payment method for more than 40% of the performance pay, and that the deferred payment period is generally not less than 3 years, in which the proportion of the deferred payment of performance compensation of the main senior managers should be higher than 50%.　　Conditional should strive to reach 60%. In addition, medium-and long-term incentives are to be paid after the expiry of the agreed lockout period. The realization of medium-and long-term incentives should be agreed by the board.　　　　The length of the lock is determined by the duration of the corresponding various risks, at least 3 years. Performance appraisal includes social responsibility index according to the guideline, commercial banks should establish a sustainable performance evaluation index System. The performance evaluation index of commercial Bank includes economic benefit index, risk cost control index and social Responsibility index.　　At least, the risk cost control index should include capital adequacy ratio, non-performing loan rate, reserve coverage, case risk rate, lever ratio and so on. The CBRC requested that in the risk cost control indicators, one of the indicators did not meet the requirements of the control, the same year, the overall performance per capita pay should not exceed the previous year level. There are two indicators do not meet the control requirements, when the full line of performance per capita in the last year on the basis of the float, senior managers performance compensation should be significantly higher than the average downward margin. If there are three or more indicators that do not meet the control requirements, the total amount of basic remuneration in the next year shall not be increased except for the performance of the current per capita salary on the basis of the previous year.