Executives at six stock, commodity, and futures exchanges in China have had their pay slashed by up to two-thirds.
Senior officials at the China Security Regulatory Commission will have to settle for their average pay as the exchanges will no longer offer a lucrative out, reports Caixin Online. The Chinese exchange executives’ pay dipped from around 1.5 million yuan (about $242,ooo) to between 500,000 and 600,000 yuan a year to bring them more into line with state-owned institutions. Low ranking officials are required to wait three years before taking an exchange job, but senior officials are not, leading many to exit for exchange jobs.
The Chinese government is actively putting caps on salaries to address public discontent with high salaries for executives of state-owned institutions. Starting in 2015, senior executive pay at the five state-owned banks are limited to 600,000 yuan. In 2013, the president of the largest Chinese bank Jian Jianquing was paid 2 million yuan.
The pay cuts have started at the top, but may trickle down and cause a country-wide brain drain, some fear.
Photo: Eric Pesik via Flickr.