Sun Xiaoxia: Assessing the performance of financial executives rather than preserving value

Sun Xiaoxia, Financial Secretary of the Treasury, said for financial executives must be from many angles, many aspects of business performance assessment, and not only pay attention to the value of value-added reporter Zhang Yuzhe after nearly two years, the finance Secretary of the Finance Department Sun Xiaoxia to do real state-owned investors once again accept this reporter interview, the focus is to improve the performance of state-owned financial enterprises. The Financial Secretary of the Ministry of Finance is regarded by outsiders as the representative of the state-owned financial asset investors, responsible for more than trillion yuan in the national capital, assets more than 40 trillion yuan "basic management."　　Sun Xiaoxia is also a director of the Central Huijin Investment Corporation. In the previous interview, she blushes to the state-owned financial assets management system of the various abuses.　　Among them, the incentive mechanism is obviously one of the most sensitive and core systems.　　In two years, the Ministry of Finance has launched a series of measures and standards on performance evaluation, and in the end of 2009, it introduced more detailed implementation rules.　　At the beginning of 2010, the Treasury will approve the executive remuneration of the central financial companies.　　"The New Century": Why choose to launch the implementation rules now? Sun Xiaoxia: Back in 2007, the Ministry of Finance has put forward the requirement of maintaining and increasing the state-owned capital of financial enterprises and the method of confirming and increasing the value, but, under the rapid development of the financial industry, especially under the warning of the international financial crisis, the assessment of financial enterprises is not enough from the value of capital preservation and appreciation,　　It is necessary to evaluate the operating performance of financial enterprises from many angles and aspects, optimize the management of financial assets and promote the sustainable operation of financial enterprises.　　This issue is also of concern to developed countries, at the G20 leaders ' financial summit and the Financial Stability Council meeting, many discussions on how to strengthen prudential supervision, scientific evaluation of business performance is an important part of prudential regulation.　　After two years of brewing, the Ministry of Finance in 2009 successively issued the "financial state and state-owned enterprises performance evaluation of interim measures" and related matters of the notice, after repeated consultation, finally launched the "Implementation rules."　　"New century": whether the performance evaluation system can be introduced, as the Ministry of Finance to implement the responsibility of the financial state-owned assets of the efforts of investors? Sun Xiaoxia: The performance evaluation of financial enterprises is an extension of strengthening the management of financial state-owned assets, the establishment of evaluation mechanism reflecting shareholder value, development strategy and scientific decision, is a key and difficult point in the current state-owned assets management work.　　It can be said that the performance evaluation of financial enterprises is an important task to further promote and deepen the reform of financial system and to implement the relevant contents of the enterprise State-owned assets law of May 2009. To this end, the Ministry of Finance has been exploring ways to improve the assessment, through the selection of profit margin, value-added ratio, non-performing loan rate and capital adequacy ratio as the core index system, including business growth, profitability, asset quality and solvency of the four major categories of 20 indicators, the implementation of the responsibility of state-owned Establish a network of responsibilities covering all financial enterprises and state-owned property representatives,into the annual assessment and the term of the evaluation of the combination of assessment and rewards and punishments linked to the responsibility system.　　Within the framework of this system, the performance evaluation system of financial enterprises plays an important role in the connecting link, which is the connection point between the basic management system and the exercise of the investor's responsibility system, and provides an effective means for the representative of the investors to exercise their duties.　　"New century": whether the performance evaluation system is scientific, the key lies in the evaluation index and its weights set, your quantitative basis? Sun Xiaoxia: In each of the major categories of indicators, according to the importance of each index and its guiding function, we determine the weights of each evaluation index, and based on the financial accounting data of 2006 and 2007, the paper calculates the performance evaluation scores of some central financial enterprises, and adjusts the results by comparison.　　, and the weights of the evaluation indicators were finally determined.　　"New century": different financial industry differences are very large, whether the indicators should also reflect the difference? Sun Xiaoxia: In the formulation of the implementation of the rules, we mainly divided the banking, securities, insurance, comprehensive financial category four industries, set the weighted average value of the industry, to reflect the level of profitability of various industries, market environment, operating characteristics and industry policy characteristics.　　This shows what is supposed to be done and what is exceeded. In addition, when the economic benefits of financial enterprises increase significantly, and more agricultural loans, SMEs loans, the performance evaluation will also be appropriate points, in order to fully reflect the efforts of different financial enterprises and social contributions; When a financial enterprise occurs in the period of responsibility of the major asset losses, major violations of disciplinary cases, Or the occurrence of a significant adverse social impact, as well as the failure to provide financial accounting information, or provide false financial accounting information, appropriate deduction.　　In this way, it can reflect the objectivity and impartiality of the assessment of financial enterprises.　　New century: The results of performance evaluation directly determine the central financial enterprise executive pay? Sun Xiaoxia: The results of performance evaluation can be gradually applied in financial enterprise target assessment, structure adjustment, development planning, and the establishment of the Financial Enterprise Equity Incentive system, annuity system and other fields. In addition, the financial enterprises can use performance evaluation means to carry out effective financial supervision of their branches. Especially important, the performance appraisal provides the support for promoting the financial enterprise salary system reform.