China International Capital Corp (CICC) is reportedly set to cut bonuses for its dealmakers by up to 40% amid a renewed government push to narrow income disparity. Some senior dealmakers could see their bonuses cut by two-thirds, according to one of the sources, who also revealed that the payouts will be made in the coming days.
CICC’s bonus cuts are among the biggest in the financial sector over the past two years. The trend of lowering wages at leading Chinese investment banks has been ongoing since Covid-19 containment measures slowed dealmaking activity in the world’s second-largest economy.
However, the cut is steep, especially since CICC’s payouts have been high in recent years. The Chinese authorities are currently intensifying a campaign against displays of extravagance in the $57tn financial sector. The Central Commission for Discipline Inspection (CCDI) vowed to eliminate notions of a “financial elite” and “parity with the West” as well as hedonism and the excessive pursuit of “money only” and “high-end taste” in February.
($1 = 6.8796 Chinese yuan renminbi)
