Some bankers at China’s state-owned financial institutions have faced significant bonus cuts as the financial sector’s compensation system is being overhauled. According to Bloomberg, bonuses for senior managers, including heads of departments at two large state-owned banks, fell by 30-50% in 2025.
In addition, heads of departments at one medium-sized state-owned bank received about 40% less in bonuses last year. Such changes are associated with the long-standing policy of the Chinese authorities aimed at achieving “general welfare” and combating the “hedonistic” lifestyle of high-ranking financial officials, as Chinese officials put it.
The Chinese authorities are also trying to change the current remuneration model in the banking sector, which they consider unbalanced. Currently, the incomes of middle-level employees often exceed the earnings of top managers, since the latter’s remuneration is limited due to their membership in the Communist Party of China.
