Date
25 May 2017
Cuts in pay and perks have prompted several executives of Chinese state-owned lenders to seek job options elsewhere. Photo: Bloomberg
Cuts in pay and perks have prompted several executives of Chinese state-owned lenders to seek job options elsewhere. Photo: Bloomberg

Bankers flee pay cuts at top Chinese banks

China’s top state-owned banks have suffered an exodus of senior executives in recent months due to dissatisfaction over cuts to pay and perks, Reuters reported.

Several officials quit state lenders and moved to a new breed of financial firms such as leasing companies, trusts and online platforms, the report said, citing bankers and headhunters.

As part of an austerity drive, Beijing last year ordered pay cuts of up to a half for senior-level state bankers. 

This has prompted many executives to seek jobs elsewhere.

“In the past we wouldn’t see CVs from the state sector, but now we do,” Maggy Fang, managing director of executive compensation Asia Pacific at Towers Watson, a professional services company, told Reuters.

Most of the resumes being received are from mid-level bankers in their 30s, Fang said.

Meanwhile, online finance platforms, trust firms and leasing companies have become a big draw as they offer more than double the salaries compared to state lenders, and also give more holidays and travel perks. 

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FL/RC

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