China’s regulators have warned global banks operating on the mainland, including Credit Suisse and UBS, to limit bankers’ pay, «Bloomberg» reported Monday.
Rewarding top people too lavishly might run afoul of China’s government, bankers were told in meetings on the mainland this year, «Bloomberg» reported, citing people familiar with the matter.
The «say-on-pay» concerns are just one factor – along with Covid-related lockdowns, low returns and fresh state moves on business -- leading executives in global banks to express doubts about China’s business outlook, the report said, citing interviews with eight senior bankers at firms including Goldman Sachs, Credit Suisse, UBS and Morgan Stanley, who were all speaking on condition of anonymity.
In addition to providing details on salaries, regulators are also pushing banks to reduce cash compensation and increase the time span on deferred compensation to at least three years, the report said, citing the sources.
