China to Limit ‘Excessive’ Incentives for Bankers in Pay Curbs

Chinese regulators told the nation’s securities industry to avoid handing out “excessive” short-term incentives to employees and smooth out the pace of pay disbursements, in their latest effort to rein in risks and promote “common prosperity.”

Incentives and short-term rewards that are too big will trigger compliance risks, according to recent guidelines published by the Securities Association of China. Pay of bankers shouldn’t be directly linked to the revenue they bring in for underwriting deals, while senior executives must be held accountable financially if they violate regulations or cause excessive risk exposure, the statement said.