By Julie Zhu and Selena Li
HONG KONG (Reuters) – A high 10 Chinese language fund supervisor has requested senior executives to return pay acquired over the previous 5 years that exceeds a brand new cap, to tally with a authorities initiative selling financial equality, mentioned two folks with direct data of the matter.
China Retailers Fund Administration (China Retailers FM) desires the executives to repay earnings past a 3 million yuan ($421,330) restrict imposed this yr for every year from 2019 to 2023, the folks mentioned.
The agency, wholly owned by China Retailers Group (CMG) – one of many nation’s largest state-owned conglomerates – is run by six executives and there are one other three who run subsidiaries.
Neither China Retailers FM nor CMG responded to Reuters requests for remark.
Capping salaries and recalling pay have change into avenues by way of which state-owned firms can adhere to the federal government’s “common prosperity” marketing campaign which since 2021 has sought to handle social and earnings inequality as financial progress slows.
The marketing campaign has seen authorities discourage extravagant existence among the many monetary elite. Fund managers have come into focus because of the excessive revenue earned though the inventory market has carried out poorly, the folks mentioned.
China Retailers FM has already requested some portfolio managers to return pay from final yr that exceeded the three million yuan threshold, Reuters reported in July.
The Shenzhen-based agency knowledgeable each the portfolio managers and senior executives – about 60 in complete – in June and began to obtain cash in July, mentioned one of many folks, who declined to be recognized as the data was non-public.
It was not clear whether or not China Retailers FM can pursue reimbursement from former workers.
Group affiliate Bosera Asset Administration, 49% owned by CMG, capped pay at 2.9 million yuan and requested some workers to return any extra acquired final yr, Reuters beforehand reported.
Not less than two different fund managers have launched a five-year claw-back, with senior administration probably the most distinguished “targets”, the second individual mentioned.
AUDITORS’ REVIEW
Auditors from the Nationwide Audit Workplace visited China Retailers FM and round a dozen fund managers within the first half of this yr, underscoring widening scrutiny of the sector, mentioned two different folks with data of the visits, declining to be recognized because of the sensitivity of the matter.
They deemed salaries at a number of the companies too excessive and requested they set pay caps and get well cash, the folks mentioned, with out specifying what they requested of China Retailers FM.
The Nationwide Audit Workplace didn’t reply to a request for remark.
The bottom wage of senior executives and division heads in gross sales and investing at Chinese language fund managers ranges from 1.6 million yuan to six million yuan, confirmed the 2023 China Wage Information of headhunter Morgan McKinley.
($1 = 7.1203 renminbi)
