The former staff of Galaxy Securities will take the old owner to the court!
The reason for suing the old owner was that the employee participated Guotai Jun'an After leaving the company after the IPO recommendation project, the company has not received 896000 yuan of project performance bonus. After the two parties filed a lawsuit to the court, the Beijing Second Intermediate People's Court has just made a final judgment that Galaxy Securities should pay a total of 896000 yuan of performance bonus corresponding to Zheng Zhili, the former employee, and bear 10 yuan of the second instance case acceptance fee.
As for the case of labor dispute with Zheng Zhili, the former employee, Wu Chengming, the Secretary of the Board of Directors of Galaxy Securities, recently replied to the Chinese reporter of the securities firm, "This is a case. It is a historical problem caused by the inconsistency between the individual and the company in the identification of performance and bonus behavior. At that time, there was no good coordination, but the company did not intentionally default employee bonuses."
At the same time, Galaxy Securities replied to the Chinese reporter of the securities firm that since last year, the company has started the reform of large investment banks and made transformation in the aspects of system, mechanism, personnel and coordination. At present, the performance of investment banks has achieved initial results.
In August last year, Galaxy Securities was deeply involved in the "collective wage seeking" of employees in the investment banking department. At that time, Wu Chengming, the Secretary of the Board of Directors of Galaxy Securities, said frankly that the business of Galaxy Investment Bank was still difficult to match the company's market position, revealing that the company had started the reform of large investment banks, carried out system and institutional adjustments, and accelerated the reform of the performance appraisal mechanism.
From 2015 to 2017, Galaxy Securities ranked among the top ten securities companies in terms of net profit, but its investment banking business income hovered outside the top 20. However, in the first half of this year, although the performance of investment banks of securities firms generally declined due to the new policies for investment banks and the stricter IPO review, the business income of Galaxy Securities investment banking grew against the trend, achieving a net income of 324 million yuan, up 166.36% year on year.
It was accused of defaulting on the bonus of 890000 yuan for former employees, and was sentenced to lose the lawsuit
Zheng Quanyi joined Galaxy Securities in 2007 and left on August 25, 2015. During his tenure, he participated in the project of "Guotai Jun'an Securities Co., Ltd. IPO", which was approved for issuance on June 9, 2015. In this project, Zheng Zhili's contribution was 11.2%, which was recognized by both parties involved.
However, Zheng Zhili has never received the performance bonus for undertaking the project, so a petition was filed against Galaxy Securities. Zheng Zhili asked the latter to pay Guotai Jun'an project performance bonus of 896000 yuan. However, Galaxy Securities believes that the income received from the project does not meet the conditions for granting project bonus to Zheng Zhili, so it is unnecessary to pay project performance bonus to Zheng Zhili.
The income received from the underwriting project is directly linked to the performance bonus of the participants, so the focus of the case is how much sponsorship income Galaxy Securities has obtained from Guotai Jun'an IPO project.
The Financial Statement of Project Closure submitted by Zheng Zhili to the court shows that the income received from Guotai Jun'an project is 172 million yuan; Galaxy Securities said that 172 million yuan was accounts receivable rather than actual income received. As Galaxy Securities and Guotai Jun'an were mutual sponsors in the listing, the amount of income received from the project in the project settlement sheet was the contract amount after the completion of the project, but in fact, the two companies offset the costs, Guotai Jun'an Securities actually paid project funds of 24.516 million yuan to Galaxy Securities.
According to the provisions of the Management Measures for Performance Distribution of Investment Bank Headquarters of Galaxy Securities, in principle, the amount of awards for underwriting projects is implemented according to the conditions listed in the following table, and the investment bank headquarters can make appropriate adjustments according to the difficulty of undertaking projects, project scale, project implementation cycle and other factors. The table shows that if the net income of the project is more than 100 million yuan (including 100 million yuan), the amount of award commitment (retroactive probation period) is 5 million yuan, and the amount of award commitment (after January 1, 2011) is 8 million yuan. It is also clearly listed in the above provisions that "project net income=project income - consulting agreement expenditure (if any) - business agreement expenditure (if any) - project direct costs - expected costs incurred during the continuous supervision of the project".
That is to say, if the income received from the underwriting project of Galaxy Securities is 172 million yuan, the net income from the project will still exceed 100 million yuan after deducting about 40.0903 million yuan of the actual expenditure of the project; If the income received from the underwriting project of Galaxy Securities is 24.516 million yuan, the net income of the project will be negative.
Whether the settlement should pay performance bonus to Zheng Quanquan in this case. If Galaxy Securities has received revenue of 172 million yuan from this project, Zheng Quanquan should receive performance bonus from this project of "8 million yuan * 11.2%", totaling 896000 yuan; If the net income is negative, Galaxy Securities does not need to pay a bonus to Zheng Zhili.
In addition, it should be mentioned that in September 2017, Galaxy Securities paid performance bonuses to in-service employees, which included the bonus of Guotai Jun'an project. Galaxy Securities said that although there was no payment back for Guotai Jun'an project at the time of distribution, and it was unclear whether there was any payment back after that, it was only issued to in-service employees as a consideration.
To sum up, Zheng Quanquan believed that "the reason why Galaxy Securities did not pay my bonus was my resignation, not the project loss, and his company had paid bonuses to other employees, so they treated me differently."
In the first instance, the court held that Galaxy Securities admitted that it and Guotai Jun'an had undertaken projects with each other and had a wide range of accounts. The amount of 24516000 yuan received by Galaxy Securities was the amount after offsetting each other's accounts. Galaxy Securities Company has not yet submitted the original accounting accounts, the transaction records of account information in the same period issued by the bank and other evidences to prove the actual arrival of accounts after being explained by the court. In the lawsuit, Galaxy Securities also recognized that Guotai Jun'an should pay 1721781.25 million yuan. In addition, Galaxy Securities Company has issued the performance award of Guotai Jun'an project to its employees before the receipt of the 24516000 yuan collection claimed by it. Therefore, the court held that the opinion of Galaxy Securities Company that does not meet the conditions for distribution has no factual and legal basis, and the court refused to accept it. It was judged that Galaxy Securities paid Zheng Zhili the corresponding performance bonus totaling 896000 yuan.
Galaxy Securities refused and appealed to the Beijing Second Intermediate People's Court to revoke the first instance verdict. In the second instance, the parties did not submit new evidence. The court held that Galaxy Securities Company believed that it had frequent account transactions with Guotai Jun'an Company, and now it only provided a payment voucher printed by itself, which was used to prove the profit and loss of the project. The court did not accept this. The appeal shall be rejected and the final judgment of the original judgment shall be upheld.
Get bogged down in employee labor disputes and start the reform of large investment banks
The labor dispute between employees of Galaxy Securities Investment Bank and the company is not a case. In the above litigation, Galaxy Securities confirmed that in September 2017, it had paid performance bonuses to its in-service employees, and this bonus was used to settle the performance bonuses owed from 2012 to 2015 and the performance bonuses that should be paid in 2016.
This is also involved. Just before the bonus payment last year, the employees of the Investment Banking Department of Galaxy Securities collectively "asked for salary", exposing the fact that the company defaulted on bonus payment for five consecutive years from 2012 to 2017. At that time, the public information showed that: Galaxy China Securities defaulted 30% of the bonuses payable to all employees of the Investment Banking Department from 2012 to 2014, and all the bonuses payable from 2015 to 2016.
What is the reason why the bonus of investment bank employees was delayed? Galaxy Securities' official reply at that time showed that "the bonus payment of Galaxy investment bank business line was implemented according to the relevant rules and regulations and assessment standards of the company and investment bank business line. At present, the contradiction in the bonus payment of investment bank business line is mainly caused by the assessment ratio, project settlement progress and other reasons."
At that time, Wu Chengming, the secretary of the board of directors of Galaxy Securities, told the Chinese reporter of the securities firm that "the business of Galaxy Investment Bank and the company's market position are still difficult to match, and need to be improved as soon as possible. To this end, the company has started the reform of large investment banks, is carrying out institutional and institutional adjustments, and is accelerating the reform of the performance evaluation mechanism, and the remaining issues related to bonuses are being actively handled.
Galaxy investment banking business has been weak for several years, and has recovered sharply in the first half of this year
Judging from the performance of Galaxy Securities in recent years, there is a certain gap between the income of investment banking business and the position of the top ten securities companies, but the performance of investment banking has rebounded significantly in the first half of this year.
Brokers in China sorted out the annual performance rankings of brokers published by the Securities Industry Association since 2014. In addition to the top ten in 2014, investment banking income of Galaxy Securities ranked 20 after 2015. Among them, in 2017, the investment banking business income of Galaxy Securities was 528 million yuan, ranking 28 among the income of securities dealers; In 2016, the investment banking business income was 979 million yuan, ranking 23; In 2015, the investment banking business income was 721 million, ranking 25 among the investment banking businesses of securities firms; In 2014, the investment banking business of Galaxy Securities was 995 million yuan, ranking 10th.
However, from the perspective of net profit indicators, Galaxy Securities ranks among the top ten securities companies. In 2017, the net profit of Galaxy Securities was 3.619 billion yuan, ranking 10th; The net profit in 2016 was 4.712 billion yuan, ranking 10th; In 2015, the net profit was 9.558 billion yuan, ranking 8th; In 2014, the net profit was 3.683 billion yuan, ranking 8th.
However, according to the performance data of the first half of this year, the ranking of investment banking business income of Galaxy Securities has rebounded. According to the data exclusively learned by the Chinese reporter of the securities firm from the Securities Industry Association, the net profit of Galaxy Securities in the first half of the year was 1.091 billion yuan, down 41% year on year, ranking 11th; However, at a time when the investment banking performance of securities firms has generally declined due to the new investment banking policy, stricter IPO review and significantly slower issuance, Galaxy Securities' investment banking business income in the first half of the year was 324 million yuan, up 166.36% year on year, ranking 15th.
Editor in charge: Guo Chunyang
