At the beginning, Country Garden Evergrande was the most "generous" in terms of executive salary of real estate enterprises

With the end of the 2020 annual report disclosure season, the salary of real estate enterprise executives has once again been pushed to the spotlight.

The reporter of the International Finance Daily checked and sorted out the executive compensation of the top 50 listed real estate enterprises (for the convenience of viewing, each company selected the top three in the salary list). Because most of the executive compensation of real estate enterprises is linked to performance appraisal, the outside world may also be able to see the trend and changes of this company, and even the entire industry, from the increase or decrease of a digital matrix.

The salary of two people exceeds 100 million yuan

In 2020, Country Garden and Evergrande will achieve sales of 788.8 billion yuan and 703.5 billion yuan respectively, continue to lead the listed real estate enterprises. With the growth of performance, the executive compensation of Country Garden and Evergrande will also rise.

The total compensation of Country Garden executives is 288 million yuan, of which Mo Bin, the president, has the highest salary. His annual salary in 2020 is 133 million yuan, a sharp increase of 93% compared with 2019. One person's compensation accounts for 46% of the total compensation of Country Garden executives, nearly half of the country. The salary of Yang Zhicheng, the nephew of Yang Guoqiang, the actual controller, and the executive director in 2020 was 57.88 million yuan, second only to Mo Bin. Song Jun, the third executive director, earned 28.83 million yuan, a decrease of 2.24 million yuan from last year.

Among listed real estate enterprises, Evergrande is the most generous. The average salary of the top three executives was the highest, reaching 81.58 million yuan. The highest executive compensation reached 204 million yuan, including 165 million yuan salary and 39.33 million yuan stock option plan.

Shi Junping and Pan Darong, executive directors, ranked second and third respectively with 20.29 million yuan and 19.4 million yuan, respectively, with salary increases of about 33% and 20% compared with 2019.

Like Country Garden and Evergrande, Rongchuang's total executive compensation also exceeded 200 million yuan, reaching 254 million yuan. Among them, Executive Director Shang Yu's salary was 44.217 million yuan, ranking first, followed by Chief Executive Wang Mengde's 39.51 million yuan. Compared with other leading real estate enterprises, Rongchuang's executive pay seems to be more balanced. In addition to Shang Yu, the president of Southwest District, Jing Hong, the president of Beijing District, Chi Xun, the president of North China District, Tian Qiang, the president of Shanghai District, and Huang Shuping, the president of South China District, were paid 38.68 million yuan, 37.63 million yuan, and 37.845 million yuan, respectively, with little difference.

Vanke's executive compensation consists of three parts: fixed compensation, annual bonus and economic profit bonus, of which the economic profit bonus is the largest part. Therefore, although the compensation announced by Yu Liang, Chairman of the Board of Directors, Zhu Jiusheng, President, and Wang Haiwu, Chief Operating Officer were 12.473 million yuan, 11.231 million yuan, and 8.958 million yuan respectively, of which Yu Liang was 44000 yuan less than last year, after adding the economic profit bonus, The salaries of the above three people reached 34.65 million yuan, 24.68 million yuan and 24.11 million yuan.

Longhu's executive pay totaled 185 million yuan, second only to Country Garden, Evergrande and Rongchuang. Among them, CEO Shao Mingxiao ranked first with a salary of 80.1 million yuan, CFO Zhao Yi and senior vice president Wang Guangjian ranked second and third with a salary of 42.97 million yuan and 36.26 million yuan respectively, and the average salary of the three executives reached 53.11 million yuan.

Some real estate enterprises have shrunk seriously

Although there is a certain gap between some second and third tier real estate enterprises and the top real estate enterprises in terms of performance, their senior management treatment is not worse than that of the top real estate enterprises.

Take Time China as an example. In 2020, the total remuneration of its six senior executives was 6.106 million yuan, of which Cen Zhaoxiong, Guan Jianhui and Bai Xihong were 16.07 million yuan, 11.32 million yuan and 12.75 million yuan respectively. The average remuneration of senior executives exceeded 10 million yuan, second only to Evergrande, Country Garden, Longhu and Rongchuang.

In 2020, Huaxia Happiness, which was deeply involved in debt default and capital chain break rumors, received 92.3995 million yuan of executive compensation for the whole year, down nearly 35% from 141 million yuan last year. However, the company still gave high salaries to two representatives of Ping An, Wu Xiangdong, co chairman, and Yu Jian, CFO. Among them, Wu Xiangdong's salary was 23.32 million yuan and Yu Jian's salary was 19.64 million yuan, ranking the top 2 among the executives of Huaxia Happiness, with a total of 42.96 million yuan, accounting for more than 46% of the total salary of the executives of Huaxia Happiness. For example, excluding Wu Xiangdong and Yu Jian, the average salary of the remaining 19 directors, supervisors and senior executives of Huaxia Happiness is about 2.6 million yuan.

In addition to Huaxia Happiness, the total compensation of senior executives of real estate enterprises such as China Resources, Joy City and Rongxin also decreased significantly year on year.

Among them, Rongxin's executive compensation in 2020 totaled 13.85 million yuan, nearly halving from 27.14 million yuan in 2019. The average salary of nine directors was about 1.54 million yuan. Chairman of the Board of Directors Ou Zonghong, President Yu Lijuan, and Senior Vice President Zeng Feiyan ranked the top three with 3.14 million yuan, 3.03 million yuan, and 2.43 million yuan respectively.

In the second tier of real estate enterprises, the average salary of the top three executives of Jinhui is the lowest, 2.99 million yuan. However, this figure has more than doubled the average salary of the top three executives in 2019. Among them, CEO Lin Yu's salary increased the most, from 360000 yuan in 2019 to 2.56 million yuan in 2020.

Seven real estate enterprises pay more than 10 billion yuan

In 2020, the sales volume of commercial housing nationwide will be 17.4 trillion yuan, up 8.7% year on year. Among them, the sales volume of residential buildings was 15.5 trillion yuan, up 10.8%.

In the market with trillion as the measurement unit, the real estate developers are rising in value and appear in the rich lists.

In the high turnover industry, what is the return of every real estate developer who is involved in it? When the land dividend and financing dividend subside, and the industry enters the era of management dividend, what will happen to employees' compensation expenses?

In the past year, with the gradual escalation of real estate regulation and the impact of the epidemic, the life of real estate developers has not been easy. The cash flow tension caused by sales pressure and tight financing has led to frequent news of layoffs and salary cuts.

This paper selects the top 50 listed real estate enterprises as a sample, and calculates the total compensation by the formula of "total wages and benefits of employees in the current period=payroll payable at the end of the period - payroll payable at the beginning of the period+cash paid to and for employees". Taking the consolidated statements as the statistical caliber, this paper combs the per capita compensation of the real estate industry in 2020, thus reflecting the diversified outlook of the real estate enterprises.

The per capita salary of the first developer exceeds 500000 yuan

According to the total cost of employees disclosed in the annual report of the top 50 listed real estate enterprises, the International Finance News reporter found that there were 7 real estate enterprises with total salary expenditure of more than 10 billion yuan.

Among them, China Railway Construction, a state-owned enterprise, won the championship with a total salary of 67.572 billion yuan with a huge number of employees. The annual report shows that in 2020, the total number of employees of CRCC will be 286242, with a per capita salary of 236100 yuan, ranking 15th among 50 real estate enterprises. Specifically, China Railway Construction Real Estate Development Co., Ltd. has 5301 employees, accounting for 1.85% of the total. However, its real estate business revenue has reached 4.5%.

Sunshine City, which ranked first in per capita salary last year, dropped to 197000 yuan this year, ranking 21st among the top 50 real estate enterprises.

After China Railway Construction, Evergrande's total salary expenditure also reached 29.02 billion yuan, ranking second. Vanke followed Evergrande with a total employee compensation expenditure of 16.516 billion yuan. Country Garden, Rongchuang, Greenland and China Resources Land ranked 4th, 5th, 6th and 7th with compensation of 15.697 billion yuan, 13.98 billion yuan, 13.797 billion yuan and 10.161 billion yuan respectively.

Although Evergrande increased its income and did not increase its profits last year, it maintained its consistent "magnanimous" style in terms of employee compensation. In 2020, Evergrande's total salary expenditure was RMB 29.02 billion, up 6.5% compared with 2019. Calculated by 123276 people, the average salary was RMB 235400, exceeding Rongchuang, China Resources Land and Country Garden.

It is worth noting that among the seven real estate enterprises with a total salary of more than 10 billion yuan, only Vanke and Country Garden's salary expenditure decreased compared with 2019.

Among them, the salary expenditure of Country Garden decreased the most, from 19.056 billion yuan in 2019 to 15.697 billion yuan, a decrease of 17.6%. The decrease of total salary comes from the decrease of the number of employees and the decrease of per capita salary. By the end of 2020, Country Garden had 93899 employees, nearly 8000 fewer than the 101784 employees in the previous year. In addition, the per capita salary in 2020 was 167200 yuan, compared with 187200 yuan in the same period last year, a decline of more than 10.7%.

Different from the substantial reduction of personnel in Country Garden, Shimao will expand its personnel significantly in 2020 to meet the needs of diversified development. The annual report disclosed that the number of employees of Shimao in 2020 was 24334, an increase of 3819 compared with 20515 in 2019. Among them, 6343 were engaged in property development business, up 12.5% from 5636 in 2019.

Vanke's total salary in 2020 will be 16.516 billion yuan, although only 5.6% lower than 17.5 billion yuan in the same period last year, its per capita salary, which was not advantageous, will again decrease by 11.72% to 117500 yuan, ranking 42nd among the top 50 real estate enterprises.

Fuli rose 72.3%, still at the bottom

In terms of per capita salary, there are 40 real estate enterprises whose per capita annual salary exceeds 120000 yuan.

Among them, the average annual salary of employees in five real estate enterprises exceeded 360000 yuan. First Capital ranked first with an annual per capita salary of 504700 yuan, followed by Greentown China with an annual per capita salary of 481500 yuan, and Longguang Group ranked third with an annual per capita salary of 480500 yuan. Rongxin Group, which had previously ranked low in the executive pay, ranked fourth with an annual salary of 430300 yuan per capita. In the past 2020, the salary of nine senior executives of Rongxin totaled 13.85 million yuan, almost halving year on year. The change of senior executives' salary did not affect the overall salary of Rongxin. "Profit King" China Overseas Development ranked fifth with 381500 yuan.

There are 9 real estate enterprises with annual salaries ranging from 240000 yuan to 360000 yuan, including Xiangsheng, Times China, Huaxia Happiness, Jinke, Xincheng, Binjiang, Hongyang, Huafa and Zhengrong.

Among them, after the overall decline of major financial indicators and debt crisis in 2020, the overall salary of employees also declined. In 2020, the annual salary per capita will decrease by 35.7% compared with 435300 yuan in 2019. Even so, it still ranked 12th with an average salary of 28001 yuan, leading many real estate enterprises.

Contrary to the high paid real estate enterprises, the average annual salary of employees of R&F Real Estate and Yuzhou Group is less than 100000 yuan.

It is worth noting that although the total salary only increased by 11.1%, because the number of employees decreased by nearly 40% to 38824, Fuli was able to achieve a per capita salary increase of 72.3% in 2020. However, even so, its per capita annual salary of 99600 yuan is still at the bottom of the industry.

Only Yuzhou Group has a lower per capita salary than Fuli. In 2020, Yuzhou Group's total salary was 489 million yuan, only higher than Xinli's 377 million yuan. Based on this calculation, the per capita salary of its 7537 employees was 64900 yuan. Yuzhou's salary may be inseparable from its performance. In 2020, Yuzhou realized a revenue of 10.4 billion yuan, down 55.2% year on year; Net profit also decreased by 97%, leaving only 117 million yuan.

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