CICC Set to Pay 2024 Bonuses to China Bankers After Long Delay

China International Capital Corp. is finally preparing to hand out 2024 bonuses after a crackdown on bankers’ compensation and ongoing buyouts caused a lengthy delay.

The Beijing-based investment bank plans to give bonuses worth roughly two to three months’ base salary, people familiar with the plan said, asking not to be named because the matter is not public. CICC did not immediately respond to a request for comment.

China’s investment banks have been under pressure to rein in pay over the past few years amid a broader crackdown on private enterprise. Bankers were even branded as “hedonists” for their lavish lifestyles; High-income financial professionals bore the brunt of President Xi Jinping’s campaign for more equitable distribution of wealth.

Companies also reduced bonuses and capped annual salaries for top executives at 2.9 million yuan. The payments come after workers received only modest payouts in recent years, with many seeing their base salaries reduced by 25% to 30% from 2023.

The brokerage has suspended bonuses for at least six months and talks are progressing to buy two smaller local brokerages, sources said.

The deal is part of China’s strategy to build world-class domestic investment banks that can stand up to global heavyweights.

Business is also picking up at CICC and other brokerages as deal making and markets improve. CICC’s net income in the first nine months of the year more than doubled compared to the previous year.

CICC is one of China’s top investment banks for initial stock sales in Hong Kong and ranks No. 1 for IPOs in the city this year, according to data compiled by Bloomberg. Competition is intense in the country and the company has not been able to rank at the top in public offerings since 2018.

Bonuses are a far cry from what overseas competitors pay. On Wall Street, the bonus pool is expected to hit a record this year if current trends continue, as major banks cash in on rising stocks and return to more trading after a long drought.

With help from Amanda Wang.

This article was generated from an automated news agency feed without modifications to the text.