In one of the biggest ever shake-ups to compensation at a state-owned Chinese bank, Reuters reports that staff at Bank of Communications will have a larger proportion of their bonuses linked to performance Share on twitter.
While salaries at Chinese banks are generally lower than those at their Western counterparts, mainland firms have traditionally made up for this by paying fixed cash bonuses to cover a range of expenses – from housing to clothing. As we reported last year, it’s also common to receive a payment when it’s your birthday or if you have a baby.
BoComm’s self-described “difficult but important” reforms would end fixed payments for living expenses and make them performance-based, according to an internal bank memo quoted by Reuters.
Separately, while rank-and-file staff at BoComm won’t have their base salaries reduced, senior executives at large state enterprises in China, including banks, face pay cuts this month under a series of government reforms aimed at making compensation more transparent and less top-heavy.
Meanwhile:
Banks in Singapore are expected to be cautious with bonuses. (Asia One)
Is it time to join the buy-side in Singapore? Local hedge funds join global elite. (Business Times)
Founder Securities says profits may suffer as it fights major lawsuit. (South China Morning Post)
China is set to give licenses to eight mainland firms to run online personal credit-data services. (South China Morning Post)
Hong Kong exchange outlines plans to reform trading link with Shanghai. (Reuters)