China's State Bankers Balk at Salary Cuts, Leave for Private Sector
Yicai Global
/SOURCE : Yicai
China's State Bankers Balk at Salary Cuts, Leave for Private Sector

(Yicai Global) May 31 -- As part of a broader anti-graft campaign launched by the Chinese government in 2012, many state-run commercial lenders are imposing limits on executive salaries.

Half of China's 16 listed banks have cut the annual salaries of their chairpersons and presidents to under CNY1 million (USD152,000). The salary of the president of Bank of Beijing Co. [SHA:601169], for instance, has been slashed by 85 percent to CNY300,000.

The move has prompted many high-level managers to leave their posts for more lucrative positions in the private sector. Last year, some 200 high-level managers left their positions at commercial banks, while before 2011, very few executives would depart, according to a report from Changjiang Times.

Last month, Mr. Zhang Xuyang, former general manager of China Everbright Bank Co.'s [SHA:601818] asset management department, departed to join Baidu Inc. [NASDAQ:BIDU] as a vice president in charge of the Internet giant's finance-related businesses.

Mr. Huang Hao left his position as general manager of China Construction Bank Corp.'s [SHA:601939] e-banking department to serve as vice president of Ant Financial Services Group, and Mr. Hou Benqi swapped Industrial and Commercial Bank of China Ltd.'s [SHA:601398] e-banking department for Zhongguancun Bank, a private bank.

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