Core Insights - The banking industry is experiencing a significant salary reduction trend that has reached top management levels, with Chengdu Bank's senior management compensation decreasing by 1.708 million yuan in 2024, a drop of 13.4% compared to 2023 [1] - The overall reduction in senior management compensation at Chengdu Bank over the past three years has been nearly 48%, indicating a long-term trend rather than a short-term occurrence [1][5] - The average salary for the core management team in 2024 is 736,500 yuan, with a median salary of 734,600 yuan, reflecting a balanced compensation structure [2] Salary Overview - The total compensation for Chengdu Bank's board and senior management has decreased from 17.7835 million yuan in 2022 to 9.2566 million yuan in 2024, showing a cumulative reduction of 8.5269 million yuan over three years [1] - The highest-paid executive in 2024 is Vice Chairman He Weizhong, while the lowest is Secretary of the Board Chen Haibo, with a salary difference of less than 150,000 yuan [2] - Chairman Wang Hui's salary increased by 13,700 yuan to 790,500 yuan in 2024, reflecting adjustments related to his position change [4] Notable Salary Reductions - The most significant salary reduction was experienced by 70-year-old foreign Vice Chairman He Weizhong, whose compensation dropped from 1.4063 million yuan in 2023 to 781,000 yuan in 2024, a decrease of 562,000 yuan or 41.8% [3] - Despite the substantial reduction, He Weizhong's salary remains slightly above the median for the management team, indicating it is still within a reasonable range for the industry [3] Reasons for Salary Adjustments - The ongoing reduction in executive compensation is driven by changes in the banking operating environment and policy directives, with Chengdu Bank reporting strong performance in 2024, including total revenue of 22.982 billion yuan and net profit of 12.850 billion yuan [5] - As a state-owned enterprise, Chengdu Bank's executive compensation must adhere to the salary assessment mechanisms set by the municipal state-owned assets supervision and administration commission, which considers multiple performance indicators [5] Industry Trends - The salary reductions at Chengdu Bank are part of a broader trend in the banking sector, with many listed banks reporting management salary decreases ranging from 5% to over 30% in 2024 [6] - This collective adjustment aligns with the financial industry's goals of cost reduction and efficiency improvement, as well as regulatory expectations linking compensation to risk and social responsibility [6] Implications for the Banking Sector - The changes in executive compensation at Chengdu Bank provide a model for salary structure reform in urban commercial banks, characterized by long-term, differentiated, and compliant adjustments [7] - The ongoing salary adjustments are expected to become a new normal in the banking industry, promoting a shift from expansion to quality improvement [7] - A rational adjustment in the compensation system is seen as beneficial for both employee cohesion and investor interests, ensuring operational efficiency and shareholder value [7][8]