Hua Xia Shi Bao·2025-04-03 09:51Summary of Key Points Core Viewpoint - The brokerage industry is experiencing a trend of salary reductions, particularly among executives, due to regulatory pressures and declining performance in investment banking activities [1][2][7]. Group 1: Salary Trends - As of April 3, 2024, 24 listed brokerages reported a total management salary of 380 million yuan, a decrease of approximately 198 million yuan, representing a decline of 34.25% year-on-year [1]. - Among the 24 brokerages, 13 reported an increase in average salary compared to the previous year, with a notable increase of 30.87% in Huazhong Securities, where average salary rose from 269,400 yuan to 352,500 yuan [3]. - Major brokerages like CITIC Securities, CICC, and Guotai Junan saw average salaries drop by 1.53%, 8.26%, and 17.05% respectively [3]. Group 2: Impact of Regulatory Changes - The regulatory environment has been pushing brokerages to strengthen salary management, with many executives' salaries falling below 3 million yuan, except for Dongfang Fortune [2]. - The tightening of IPO approvals has significantly impacted investment banking revenues, leading to a reduction in workforce and salaries in this sector [4][5]. Group 3: Business Performance and Adjustments - The investment banking sector is under pressure, with a record 436 IPO rejections in 2024, leading to a reduction in personnel by up to 25% in some firms [5][7]. - Brokerages are adopting various cost-cutting measures, including reallocating staff from equity to bond business and reducing performance-linked bonuses [6]. - The decline in revenue from investment banking and public fund commission reductions has led to increased competition in research departments, further impacting salaries [5][6]. Group 4: Long-term Implications - While short-term salary reductions may cause discomfort, they are expected to benefit the financial industry's long-term health by lowering operational costs and enhancing risk management awareness [8].