(Source/Visual China)
The annual reporting season has not yet ended, but with the disclosure of information by major banks, the financial situation of each company has gradually surfaced, which has also made the high salaries of bankers a hot topic again.
Up to now, among the 12 joint-stock banks, only China Merchants Bank, Ping An Bank, China CITIC Bank, Minsheng Bank, Everbright Bank, Zheshang Bank, Bohai Bank, Industrial Bank and Hengfeng Bank have announced their results. Statistics from the Weekly "Finance and Economics" found that the average annual salary of these 9 companies is nearly 560,000 yuan, of which China Merchants Bank ranks first with a per capita annual salary of 640,000 yuan.
In addition to Hengfeng Bank, the remaining 8 companies also disclosed the remuneration of the company's executives, with a per capita annual salary of 1.24 million yuan, of which Ping An Bank ranked first with a per capita salary of 1.77 million yuan for executives.
High bank salaries are no longer an industry secret. In particular, the per capita remuneration of joint-stock banks is in the forefront of all types of banks. Some insiders pointed out that compared with state-owned large banks and rural commercial banks, joint-stock banks are more market-oriented, the mechanism is more flexible, in the face of fierce market competition, only with considerable treatment, can we attract talents, especially executives and business backbones.
The labor cost of 9 banks exceeds 200 billion
"Finance and Economics" weekly combed the annual report and found that the labor cost expenditure of the above 9 banks will rise in 2021, and the average increase will be more than double digits. Among them, the highest increase in labor costs was Industrial Bank, up to 19.33%, and the lowest was Ping An Bank, with an increase of 5.47%.
As for the reasons for the rapid growth of labor costs, Wang Kang, vice president of China CITIC Bank, has given a representative explanation. He believes that first, the efficiency growth last year, in accordance with the principle of linking wages and benefits, wages and bonuses have been correspondingly improved; second, the investment in scientific and technological personnel has been increased last year, thereby driving the growth of labor costs; third, there are incomparable factors, and some preferential policies for employees affected by the epidemic will expire in 2021.
(Annual report data / Statistics by group data of those with subsidiaries)
Overall, the 9 joint-stock banks that have disclosed their annual reports will have a total labor cost of 230.215 billion yuan in 2021. According to the number of employees announced by each bank as of the end of 2021, the average annual salary of employees of the nine banks is as high as 556,000 yuan, which is equivalent to an average monthly salary of 46,300 yuan.
China Merchants Bank, which has the highest labor costs, also has the highest per capita salary. According to the annual report, in the whole year of 2021, the Group's employee expenses totaled 66.028 billion yuan, an increase of 15.76% year-on-year. At the same time, as of the end of 2021, there are 103669 corresponding employees. Based on this quantity, the average annual salary of employees of China Merchants Bank and its subsidiaries is as much as 636,900 yuan, and the average monthly salary is about 53,100 yuan.
Even Hengfeng Bank, which has the lowest labor cost and the lowest per capita salary, has a total salary of 5.169 billion yuan for the group's employees in 2021, with an average annual salary of more than 440,000 yuan according to the 11,697 employees in the annual report.
As a high-income group in society, bank practitioners match this high salary with a high per capita production capacity of more than 3 million yuan. Taking Ping An Bank and China CITIC Bank as an example, the per capita income generated in 2021 will reach 4.17 million yuan and 3.45 million yuan respectively. Industrial Bank, Everbright Bank and China Merchants Bank, etc., the per capita income generation is also more than 3 million yuan.
Executive compensation generally declined, shrinking by nearly 30% at its peak
It is undeniable that the reason why the per capita compensation of bankers is so high is directly related to the excessive remuneration of bank executives. In general, the executive compensation of joint-stock banks is the highest among all types of banks.
According to the statistics of Caijing Tianxia Weekly, in addition to some undisclosed executives and executives who have not received from banks due to receiving remuneration from related parties or other reasons, the total compensation of executives of the eight joint-stock banks in 2021 is about 243 million yuan, and the per capita compensation is as high as 1.2393 million yuan.
(According to the executive salary statistics disclosed in the annual report)
Specifically, the highest total executive compensation is Minsheng Bank, up to 59.4655 million yuan, nearly 20 million yuan higher than the second place China Merchants Bank. The total executive compensation of China CITIC Bank, Everbright Bank and Zheshang Bank was 29.3472 million yuan, 24.0841 million yuan and 23.6023 million yuan respectively. At the end are Bohai Bank and Industrial Bank, both with a total amount of less than 20 million yuan.
However, with the complex economic environment in recent years, coupled with factors such as the epidemic, various industries have begun to reduce management salaries, and banks are no exception. Judging from the currently disclosed financial reports, since 2021, except for the average salary of executives of Ping An Bank, Minsheng Bank and Everbright Bank, the average salary of the executives has increased, and the rest of the banks have declined to varying degrees.
Specifically, the average compensation of Ping An Bank executives was the highest, reaching 1.7729 million yuan, up 12.99% year-on-year, the largest increase. Followed by Minsheng Bank and Everbright Bank, the average compensation of senior executives was 1.6072 million yuan and 1.338 million yuan, respectively, an increase of 6.63% and 2.47% respectively.
In contrast, the per capita compensation of senior executives of Zheshang Bank fell the most, down by 29.82%, while China Merchants Bank and Bohai Bank fell by 21.5% and 21.46% respectively. However, even though the average executive compensation has shrunk by more than 20%, China Merchants Bank still ranks third with an average executive compensation of 1.4752 million yuan.