China to regulate brokerage execs' salaries

BEIJING - China's top securities watchdog said Friday that it is considering a regulation on the salary of brokerage executives, in a bid to enhance management at securities firms.

In a set of draft rules released to seek public opinion, the China Securities Regulatory Commission said payment on more than 40 percent of brokerage executives' performance-related salary should be delayed for at least three years.

If executives fail to perform their duties and cause major irregularities or risks in the delay periods, the company should stop paying the remainder of the unpaid salary, according to the draft rules.

The CSRC said that the salaries of some Chinese brokerage executives are unreasonably structured and lack complete evaluation mechanisms. Therefore, the new rules require securities firms to establish more effective evaluation systems and set a link between wages and risks.

In a separate statement, the CSRC also released draft guidelines on securities firms participating in regional equity transactions, so as to better serve medium-sized, small and micro-enterprises.

Securities firms are able to participate in regional markets in two ways: either as members of the regional equity markets, or as shareholders of the regional markets involved in market regulation when starting a business, according to the CSRC.