Core Viewpoint - The practice of performance salary clawback in the banking industry is becoming more common, with several banks reporting significant amounts of clawed-back salaries due to risk exposure and management failures [2][3][5]. Summary by Category Performance Salary Clawback - Several banks have reported clawing back performance salaries, including: - Bank of China: 2,469 instances totaling 32.5 million yuan [5] - Zheshang Bank: 1,424 instances totaling 30.34 million yuan [5] - Bohai Bank: 612 instances totaling 24.03 million yuan, with a 65.41% increase in the number of clawbacks over two years [3] - Zhongyuan Bank: 20.11 million yuan clawed back [6] - The average amount clawed back per individual varies, with Bohai Bank averaging 39,300 yuan per person [3]. Regulatory Environment - The performance salary clawback mechanism has been in place since 2010, with guidelines issued by the former China Banking Regulatory Commission [7]. - In 2021, further regulations were established to enhance the clawback mechanisms, specifying conditions under which salaries can be reclaimed [7]. - Recent government directives have emphasized the need for financial institutions to establish robust performance salary clawback systems [8]. Penalties and Compliance - Bohai Bank received 16 penalties in 2024, with a total fine of 2.75 million yuan, primarily related to loan management issues [4]. - Since 2021, Bohai Bank has accumulated 154 penalties totaling 199 million yuan [4]. - The banking sector as a whole faced 6,666 penalties last year, amounting to over 1.8 billion yuan, with rural commercial banks and state-owned banks being the most penalized [8]. Future Outlook - As regulatory scrutiny increases and banks improve governance, the performance salary clawback system is expected to become more standardized across the industry [9].