Salary caps spread in China’s finance sector amid ‘common prosperity’ drive

Several state-backed financial institutions in China have already placed annual salary caps on their senior executives, the Post has learned, as Beijing pushes forward with a campaign to narrow the wealth gap.

Central government-owned financial institutions have set a pay ceiling of just 1 million yuan for senior executives, while their subsidiaries are using the original 3 million yuan limit for them, said one source, who spoke on condition of anonymity.

Securities firms have taken the lead in moving forward with the salary cap, with some also yet to issue staff with their 2023 annual bonuses, another source working for a brokerage firm said.

Large state-owned banks, insurance companies, stock exchanges and regulatory agencies will be the next targets of the campaign, the source said.