May 30, 2024 04:14 AM
ECONOMY
Executive Pay at China’s Listed Firms Fell in 2023 as Profits Declined
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What’s new: The average salaries earned by top executives at China’s domestically listed companies declined last year, reflecting weaker profitability amid a slowing economy and stock market volatility.
The average pay for listed companies’ chairmen fell 3.32% in 2023 from the previous year, while salaries for general managers, board secretaries and chief financial officers dropped 3.46%, 1.12% and 3.82%, respectively, according to a report by Shanghai Rongzheng Enterprise Consulting Service (Group) Co. Ltd. based on a survey of 5,326 companies traded in Shanghai and Shenzhen.
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- Average salaries of top executives at Chinese listed companies declined in 2023; chairmen's pay fell 3.32%, general managers 3.46%, board secretaries 1.12%, and CFOs 3.82%.
- The highest-paid executive was WuXi AppTec's Li Ge with 42 million yuan ($5.8 million), a significant drop from 86.5 million yuan earned by Tongwei’s vice president in 2022.
- Companies reduced stock incentive plans nearly 14% in 2023, reflecting caution amid weaker profitability and volatile market conditions.
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Who’s Who
- WuXi AppTec Co. Ltd.
- WuXi AppTec Co. Ltd. is a biopharmaceutical firm that topped the list of companies in executive payments for 2023. Its chairman and CEO, Li Ge, was the highest-paid executive with a salary of 42 million yuan ($5.8 million) in 2023. WuXi AppTec surpassed other companies like Mindray Medical International Ltd. and Tongwei Group Co. Ltd. in terms of executive compensation.
- Mindray Medical International Ltd.
- Mindray Medical International Ltd. is a medical device supplier that ranked second in executive payments among domestically listed Chinese companies in 2023, according to a report by Shanghai Rongzheng Enterprise Consulting Service (Group) Co. Ltd.
- Tongwei Group Co. Ltd.
- Tongwei Group Co. Ltd. is a new energy giant mentioned in the article. It was one of the top companies in executive payments in 2023, following biopharmaceutical firm WuXi AppTec Co. Ltd. and medical device supplier Mindray Medical International Ltd. In 2022, Tongwei’s vice president Li Bin was the top earner with a salary of 86.5 million yuan.
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What Happened When
- 2022：
- Li Bin, Tongwei’s vice president, was the top earner with an 86.5 million yuan salary.
- 2023：
- The average maximum yearly salary paid by listed companies declined by 3.27%, marking the first annual drop.
- 2023：
- The overall net profits of listed companies decreased 1.45%.
- 2023：
- The average pay for listed companies’ chairmen fell 3.32%, general managers' salaries dropped 3.46%, board secretaries' salaries fell 1.12%, and chief financial officers' salaries dropped 3.82%.
- 2023：
- Li Ge, chairman and chief executive officer of WuXi AppTec, was the highest paid executive with a salary of 42 million yuan.
- 2023：
- Companies reduced stock incentive plans by nearly 14% from the previous year.
- By April 30, 2024：
- The financial statements of 5,326 listed companies were published and used for Shanghai Rongzheng's report.
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