Some media reported that the China Securities Regulatory Commission held meetings in Shanghai and Beijing this year, requiring foreign investment banks to report details of executive compensation and not to overpay executives. In this regard, the person in charge of the relevant department of the CSRC said that this is false news. The CSRC, relevant CSRC bureaus, and industry associations have not held the above-mentioned meetings. The securities fund overall business development Unified supervision and full respect of the agency's decision-making autonomy.
The person in charge of the relevant departments of the China Securities Regulatory Commission pointed out that the salary system is an important part of corporate governance, and the establishment of a scientific and reasonable salary system is the basis for maintaining the core competitiveness of the industry and the basis for maintaining the stable and sustainable development of the industry. In recent years, global regulatory authorities have paid more attention to the system of compensation incentives, in order to prevent financial risks caused by excessive speculation and excessive incentives. The Financial Stability Board (FSB) pointed out when summarizing the lessons of the 2008 financial crisis: "The high compensation of large financial institutions is based on short-term high profits, ignoring the long-term risks of financial enterprises, and is one of the main factors leading to the financial crisis." Countries such as Europe and the United States and international organizations have successively formulated relevant regulatory systems and rules for compensation management in the financial industry . For example, the Financial Stability Forum (FSF) issued the Principles of Sound Compensation Practices, the European Union issued the Fourth Capital Requirements Directive, and the Federal Reserve issued the Financial Stability Forum (FSF). "Company Compensation Policy Supervision Plan" to supervise the remuneration of financial practitioners to prevent executives from taking excessive speculation in order to obtain high salaries.
The above-mentioned person in charge stated that in order to guide industry institutions to establish a stable salary system, improve the salary incentive and restraint mechanism, and promote the high-quality development of the industry, recently, the regulatory authorities, together with industry associations, have fully listened to industry opinions and suggestions. The fund industry associations have issued compensation management guidelines. It reflects the basic idea of ​​respecting the basic laws of the market, basing itself on the actual situation of the industry, consolidating the main responsibility of the organization, and preventing short-term excessive incentives. To effectively serve the real economy and prevent financial risks, there is no salary limit set, nor does it involve the total salary and specific operation methods.
Specifically, the core systems of the salary management guidelines include: strengthening the long-term incentive and restraint mechanism, and implementing the salary deferred payment arrangement. It is clearly not allowed to carry out business through contracting, personnel affiliation, etc., and that the salary income of employees shall not be directly linked to the income of the projects they undertake or undertake. Establish and improve the bonus co-investment mechanism for core employees such as management and fund managers, and implement a bonus recovery and deduction system for those responsible for violations. Support the securities and fund industry to explore and implement a diversified long-term incentive and restraint mechanism, and weaken the assessment ratio of indicators such as scale ranking, short-term performance , income and profit.
The person in charge of the relevant department of the CSRC said that in recent years, in accordance with the unified deployment of the country's financial industry to open up to the outside world, the CSRC adhered to the principles of marketization, rule of law, and internationalization, relaxed and abolished the restrictions on foreign shareholding in securities and fund operating institutions, and has approved 11 companies. For foreign-owned securities and fund companies, the overall operation and development of their institutions in China is good. The CSRC has unified supervision in accordance with laws and regulations, and fully respects the autonomy of institutions in operating decision-making.
