CYG(SH:600525) Shang Hai Zheng Quan Bao·2025-12-09 03:24Core Viewpoint - ST Changyuan has faced three consecutive years of declining profits, with projections indicating a significant loss in 2024, yet the board and executives are seeking salary increases, raising concerns about the alignment of compensation with company performance [1][4]. Group 1: Salary Increases and Company Performance - The total salary for ST Changyuan's board and senior management for 2025 is proposed to be capped at 21.802 million yuan, with the current chairman and former chairman's combined salary not exceeding 5.171 million yuan, indicating a notable increase compared to 14.5537 million yuan in 2024 [2][3]. - The current chairman, Qiao Wenjian, has seen his salary rise significantly, with a cumulative increase of over 300% from 2022 to 2024, while the company's performance has deteriorated from a profit of 674 million yuan in 2022 to a projected loss of 978 million yuan in 2024 [3][4]. - The proposal for salary increases faced internal dissent, particularly from two directors representing the largest shareholder, who opposed the increase citing misalignment with the company's financial struggles and the new chairman's short tenure [2][3]. Group 2: Regulatory Changes and Governance - The China Securities Regulatory Commission (CSRC) issued revised Corporate Governance Guidelines, mandating that executive compensation be linked to company performance, aiming to enhance accountability and align management decisions with long-term goals [1][4][5]. - The new guidelines require companies to establish a compensation management system that aligns executive pay with company performance and personal achievements, promoting sustainable development [4][5]. - The CSRC's revisions also emphasize the need for mechanisms to reclaim or defer executive compensation in cases of poor performance, reinforcing the connection between pay and long-term value creation [5][6]. Group 3: Shareholder Response and Governance Practices - Following the concerns raised by the China Securities Investor Service Center, the proposed salary increase was ultimately rejected at the shareholders' meeting, with significant opposition votes against both the former and current chairman's salary proposals [6]. - The center's actions reflect a broader trend where minority investors are increasingly voicing their concerns regarding executive compensation, advocating for alignment with company performance [6]. - The center aims to enhance corporate governance and protect minority investors' rights, contributing to the overall quality of the capital market [6].