Core Viewpoint - The year-end bonus system in state-owned enterprises (SOEs) creates a perception of "back pay" due to the fixed salary cap established at the beginning of the year, which is linked to the company's economic performance and profit targets [2][4][20]. Salary Cap Management - The total salary budget is predetermined annually, encompassing all forms of employee compensation, including salaries, bonuses, and allowances [2][18]. - The salary budget is linked to the company's economic performance; if profits decline, the salary budget must also decrease [4][20]. - This budgetary constraint leads to conservative monthly payouts, with significant adjustments made at year-end based on confirmed performance metrics [5][20]. Performance Pressure in 2025 - The major telecom operators are facing significant performance pressures, with emerging business revenue growth slowing down from 22.2% in 2023 to 9.9% in 2024, and further stagnation expected in 2025 [6][22]. - EBITDA for China Mobile and China Unicom has shown rare negative growth, while China Telecom's growth rate has also declined, indicating reduced profitability [6][22]. - Management salaries have been cut, with China Mobile's key management compensation decreasing from 10.1 million yuan in 2022 to 9.29 million yuan in 2024, a reduction of approximately 8% [6][22]. Year-End Bonus Disparities - There is a significant disparity in year-end bonuses among employees, with reported bonuses ranging from 6,000 yuan to 150,000 yuan depending on position and location [7][23]. - For example, a graduate from Hunan Mobile received a total of 100,000 yuan, while a master's degree holder from Anhui received around 30,000 yuan [7][23]. - The differences reflect the complex internal distribution logic within the operators [9][25]. Hierarchical Influence on Compensation - The fixed salary cap means that higher-ranking employees receive a larger share of the total compensation pool, leading to substantial differences in bonuses based on job level [10][26]. - For instance, an employee in a lower position may receive only a fraction of what a higher-ranking colleague earns for similar contributions [10][26]. Departmental Impact on Bonuses - Not all departments within the telecom operators are equally valued; R&D departments are prioritized, with significant increases in R&D budgets for AI and cloud computing [12][28]. - Conversely, traditional communication roles are under pressure, with bonuses likely to decrease as these services decline [12][28]. Year-End Bonus as a Management Tool - Year-end bonuses serve as a management tool rather than just a reward, with a portion of the total salary budget allocated to performance-based bonuses linked to company performance metrics [29][34]. - This system allows for differentiated bonuses to incentivize and manage employee performance effectively [29][34]. Future Trends in Year-End Bonuses - The trend of bonus disparities is expected to continue, with traditional communication roles facing further reductions while positions in AI and computing may see increases [15][31]. - The success of the operators' transformation into digital service providers will directly influence the potential for year-end bonuses to become genuine incentives rather than mere compensatory payments [33].