Collective salary cuts in the financial circle?

Chief Business Review

2024-07-02 14:27Chief Business Review official account

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01 The financial industry has recently faced multiple rounds of inspections, including cross-inspections by the China Securities Regulatory Commission, internal audits by shareholders, and on-site audits by the National Audit Office, with the aim of protecting the interests of investors and optimizing the development ecology of the industry.

On April 12, 022024, the State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market", which proposed to improve the salary management system of the securities and fund industry, and the salary reform of the fund industry is the general trend.

03 However, at present, the rumors about the fund manager's salary of more than 3 million have been denied by the regulator and the fund company, and the salary reform and stricter supervision of the industry are the direction of future development.

04In addition, the issuance of commercial banking and private equity licenses has begun to be more stringent, and some public funds of central enterprises have started to retire salaries, but the specific standards vary from bank to bank and region.

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The financial circle has become another industry that has begun to "rectify" after real estate, education and training, and the Internet?

Last month, there were rumors in the market that the regulator required all major public fund companies to return all salaries with an annual salary of more than 3 million after 2019. But subsequently, regulators and a number of fund companies denied this, saying that no relevant documents were released.

At the same time, it has been reported that the public fund industry is currently facing multiple rounds of inspections, including cross-inspections by the China Securities Regulatory Bureau, internal audits by shareholders, and on-site audits by the National Audit Office. These inspections are a reflection of the strict regulatory policy orientation, aiming to protect the interests of investors and optimize the development ecology of the industry.

In addition, the "Several Opinions on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Capital Market" issued by the State Council on April 12, 2024 proposes to improve the remuneration management system of the securities and fund industry that is compatible with business performance, business nature, contribution level, compliance and risk control, and social culture. This shows that the salary reform of the fund industry is the general trend, but the specific reform measures and intensity may vary depending on the situation of each fund company.

Therefore, according to the current limited information, the current rumors about the fund manager's salary of more than 3 million have been denied by the regulator and the fund company, but the industry's salary reform and stricter supervision are the direction of future development. Whether there will be further policies in the future, it is necessary to continue to pay attention to regulatory developments.

However, just over the past weekend, there were rumors that the financial industry was beginning to suffer a "rectification".

Someone mentioned that about two or three years ago, the investment bank began to cut salaries, and the monthly salary of fresh graduates in the original head investment bank was about 3.5w, not counting bonuses.

There are also self-media mentioned that the head investment bank with the prefix in China asked for the return of the 2.2 billion bonuses that were overissued in the past.

However, investment banks do not account for a large part of the financial circle, and they will begin to "rectify" the pan-financial circle in 2024.

First of all, commercial banks, China Merchants Bank mentioned that they want to break the "meritocracy", and one of the actions to break it is to reduce salaries. The author also asked some friends in the bank, there are indeed salary cuts, and some departments with good treatment may reduce salaries more, in principle, it is necessary to reduce the needs of exceeding the standard, and the specific standards may vary from bank to bank and region to region. Some banks' suppliers have also reported that budgets are being cut.

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The key is that there are two points mentioned by many people, one is that the grassroots employees of the bank hope that the bank's senior management will be lowered first, and the other is that the employees of the branch hope that the head office will be lowered first.

This is also human nature, branches, sub-branches, grass-roots employees, are responsible for the front-line service figures and assessment indicators, salary and bonus compared to the head office and leaders, must be less, if you want to reduce salary, they think that it must start from above.

Second, the issuance of private equity licenses has become more stringent, and commercial banks cannot sell private equity funds on behalf of others.

Then, it is the public fund salary cut mentioned at the beginning, according to the Financial Associated Press, some central enterprise public funds have started the salary refund work, but the salary refund standard is not the rumored 3 million yuan or 2.9 million yuan, but after reaching a certain standard, part of the return.

There are also quantitative and brokerage research institutes, which are rumored to have been rectified as well. Including the previous strategy meeting, which would generally go to a tourist city, and after the meeting, the fund manager would be taken on a trip, but now these activities are banned. Activities such as private stock trading are even more prohibited, including taking the accounts of relatives and friends to manage money, and violations will be severely punished.

All kinds of signs show that the financial industry has entered a period of adjustment, no matter how large the salary cut is, it represents the determination of the regulator, the inflated salary of the financial industry will be rectified, and the high salary of the financial industry is not impossible, but must have performance endorsement.

Helping users and customers make money, their high salaries are reasonable. Instead of taking other people's money to invest, and ensuring their own income in drought and flood.

In addition, Yao Yang, director of the China Economic Research Center of Peking University, also said that the current salary in the financial industry is inflated, so the overall salary of the financial industry should be reduced. The policy is not to punish, but to reduce the attractiveness of the financial industry, so that the best people can return to industry, especially high-tech industries.

We all know that our chips are stuck in the neck, for example, the recent artificial intelligence, although we have started, but not leading, there are many areas in other fields that need to break through, so we still need more young people to invest in this surging scientific and technological change, through the adjustment of the industry salary this baton, so that more young people are willing to learn from science and engineering, willing to engage in scientific research, willing to enter the science and technology industry or industry.

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When the author took the college entrance examination, the slogan was "learn mathematics, physics and chemistry well, and I am not afraid to go all over the world", and the follow-up wind direction has indeed changed, finance, business and other majors are hotter, and now 20 years of feng shui are in turn, the financial industry has pushed up the asset bubble, the supply of talents exceeds the demand, and the harm to the economy is greater than the good, it is time to adjust.

Of course, the overall salary cut in the financial industry will definitely have an impact on real estate, high-end liquor, and high-end restaurants, and everyone should be more cautious about investing in this area.

So, what do you think? If you are working in the financial industry, what do you think, welcome to discuss in the message area.

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Personal opinion, for reference only