Chinese regulators warned the banks at meetings in Shanghai and Beijing this year not to be too generous with their top brass, people familiar with the matter said, not in the context of the era of shared prosperity. The sources said that regulators asked banks to reduce the cash portion of compensation and extend deferred bonuses to three years or more, while other issues included licensing, recruitment, data security and more. Spokespeople for UBS, Goldman Sachs, Credit Suisse and Morgan Stanley declined to comment.
In recent years, China has advocated the “common prosperity” policy, hoping to restrict the super-rich entrepreneurs, narrow the gap between the rich and the poor, and promote common prosperity. Against this backdrop, several major banks, including Credit Suisse, JPMorgan and UBS, have recently made personnel changes at the top. Credit Suisse, which hired regarding 200 staff in China last year, is now delaying the launch of its local bank once more and may lay off dozens more, people familiar with the matter said. Other banks are likely to take similar action.
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