After the senior executives of Shengjing Bank were dismissed for 19 million yuan, another hall official took millions of salary _ Sina Finance

　　 Source: House of Finance and Economics

With the recent disclosure of Shengjing Bank's 2020 financial report, the compensation of its senior executives has again attracted attention.

Although listed on the Hong Kong Stock Exchange as early as 2014, Shengjing Bank's executive compensation is not transparent. If it had not been for the disclosure of a request from the State owned Assets Supervision and Administration Commission of Shenyang City, the public would not have known that there was someone with an annual salary of more than six million yuan beyond the annual report published by Shengjing Bank.

According to media information, at the end of 2019, three municipal management cadres and senior executives (secretary of the Party Committee, secretary of the Commission for Discipline Inspection and chairman of the trade union) of Shengjing Bank were required to return nearly 19 million yuan of salary in 2016 and 2017, of which Liu Yanxue, then secretary of the Party Committee, returned 3.3663 million yuan in 2016 and 5.9867 million yuan in 2017. It can be seen that Liu Yanxue's salary in 2017 must exceed 6 million yuan. Strangely, as a listed company, Liu Yanxue's salary was not disclosed in the annual report of Shengjing Bank that year.

According to the documents of Shenyang SASAC disclosed by the media, Liu Yanxue's salary approved by the SASAC was 727000 yuan in 2016 and 756100 yuan in 2017. Although we don't know what the salary will be subsequently approved, according to the financial report, Liu Yanxue's salary in 2018 was 2.228 million yuan, and the actual salary, including discretionary bonus, still reached 3.609 million yuan.

High salary - return - receive high salary again, and Shengjing Bank's executive compensation is still foggy.

19 million salary returned

On November 6, 2019, the State owned Assets Supervision and Administration Commission of Shenyang Municipality released the Request for Instructions on Relevant Issues Concerning the Return of Annual Remuneration Exceeding the Standard for Municipal Cadres of Shengjing Bank on its official website. Liu Yanxue, Secretary of the Party Committee of Shengjing Bank, Zhang Tao, Deputy Secretary of the Party Committee, and Xu Cheng, Chairman of the Trade Union, were required to return nearly 19 million yuan in 2016 and 2017 due to excessive pay.

Of the 18.927 million yuan returned by three municipal cadres, 6.2818 million yuan was returned in 2016 (3.3663 million yuan was returned by Liu Yanxue, Secretary of the Party Committee, and 2.9155 million yuan was returned by Zhang Tao, Deputy Secretary of the Party Committee and Chairman of the Trade Union); RMB 12.6453 million was returned in 2017 (RMB 5.9867 million was returned by Liu Yanxue, Secretary of the Party Committee, RMB 4.1944 million was returned by Zhang Tao, Deputy Secretary of the Party Committee and Secretary of the Commission for Discipline Inspection, and RMB 2.4642 million was returned by Xu Cheng, Chairman of the Trade Union).

However, the salary of the above three persons was not disclosed in the financial reports of Shengjing Bank in 2016 and 2017. Liu Yanxue, then the Secretary of the Party Committee, was elected as a non-executive director in 2018, and his salary was only shown in the 2018 financial report.

According to the annual financial report of Shengjing Bank, Liu Yanxue was elected as a non-executive director in February 2018. From January 2020, he served as the director of the Environmental and Resource Protection and Urban Rural Construction Committee of the Standing Committee of Shenyang Municipal People's Congress. From August 2016 to May 2019, served as the Party Secretary of Shengjing Bank. From February 2013 to October 2016, the State owned Assets Supervision and Administration Commission of Shenyang Municipal People's Government successively served as the Deputy Secretary, Secretary and Director of the Party Committee.

At the extraordinary shareholders' meeting held by Shengjing Bank on October 20, 2020, according to the shareholders' resolution, Liu Yanxue is no longer a non-executive director.

What is the approved salary?

At that time, the senior executives of Shengjing Bank were dismissed, which caused widespread concern in the banking industry. Moreover, the secretary of the Party Committee of Shengjing Bank, who was asked to withdraw his salary, was transferred from the director of the State owned Assets Supervision and Administration Commission of Shenyang and was a department level cadre of Shenyang. The salary refund document was issued by the SASAC, that is, the SASAC issued a document for the former SASAC director to return his salary.

According to the analysis of insiders, the salary refund document of Shenyang SASAC has many unusual features. First, the decision was made by the SASAC in accordance with the spirit of Zhang Lei, secretary of the Shenyang Municipal Party Committee, who said that the part of the salary of the administrative cadres of Shengjing Bank that exceeds the upper limit of relevant regulations must be returned to the SASAC; Second, this pay back event was aimed at the municipal cadres of Shengjing Bank, and did not ask for the pay back of the chairman, president and other non municipal cadres, that is to say, not all bank executives were restricted; Third, the returned salary did not return to the bank in the original way, but entered the SASAC, which was mainly used for the supervision of state-owned assets such as the assignment of CFO and the reform and development expenditure of state-owned enterprises.

Then, how should Shengjing Bank set its salary standard?

According to the "Opinions of Shenyang on Deepening the Reform of the Remuneration System for the Principals of Municipal State owned Enterprises" (SWF [2017] No. 39), it is estimated that the maximum salary of the principal in charge of municipal state-owned enterprises in 2016 should not exceed 727000 yuan, the maximum salary in 2017 should not exceed 756100 yuan, and the deputy principal should be determined by 0.6-0.9 times of the principal. The actual annual salary of three municipal cadres of Shengjing Bank after refunding was: in 2016, Liu Yanxue, Secretary of the Party Committee, was 727000 yuan, and Zhang Tao, Deputy Secretary of the Party Committee and Chairman of the Trade Union, was 654300 yuan based on 0.9 times of Liu Yanxue; In 2017, Liu Yanxue paid 756100 yuan, and Zhang Tao and Xu Cheng paid 680500 yuan based on 0.9 times of Liu Yanxue.

Shenyang SASAC also clarified the tax payment of Shengjing Bank's executive compensation. According to the Interim Measures of Shenyang State owned Assets Supervision and Administration Commission on the Remuneration Management of Heads of Invested Enterprises (SGZF [2017] No. 132), the remuneration of heads of enterprises is pre tax income. The salary of three municipal cadres of Shengjing Bank is actually after tax income (according to the actual salary, the annual personal income tax payable by each person is about 170000 yuan).

Is it illegal to take millions of salaries?

But it is strange that in the year after the salary retirement event, Shengjing Bank paid Liu Yanxue far more than the 750000 yuan approved at that time.

According to the 2018 financial report, Liu Yanxue's salary was 2.228 million yuan, his discretionary bonus was 1.169 million yuan, his salary was 47000 yuan, his defined contribution pension plan was 165000 yuan, his actual salary was up to 3.609 million yuan, and he received all of them in the current year without delay.

In accordance with the Opinions of Shenyang on Deepening the Reform of the Remuneration System for the Heads of Municipal State owned Enterprises (SWF [2017] No. 39), the salary of the heads of enterprises consists of three parts: basic annual salary, performance annual salary and term incentive income. Among them, the basic annual salary and performance annual salary will be paid in the same year, and the term incentive income will take three years as a term of performance assessment, which will be determined by 30% of the total annual salary level during the term of office. The incentive income of tenure is deferred and paid in installments of 30%, 30% and 40% within three years after the expiration of tenure.

In 2019, Liu Yanxue's total salary suddenly dropped to 822000 yuan, which is close to the amount approved by SASAC. In addition, there was a delayed payment of 65000 yuan, so Liu Yanxue's salary in 2019 was actually 757000 yuan.

In 2020, Liu Yanxue's salary dropped sharply to 0 yuan. In fact, he left his post as a non-executive director in October 2020. Is Liu Yanxue not paid for these 10 months? The financial report disclosed that in 2020, Liu Yanxue had only a salary of 35000 yuan, a discretionary bonus of 100000 yuan, no delay in payment, and the total salary before income tax and actual salary were 135000 yuan.

It is worth mentioning that in recent years, the senior executives of Shengjing Bank have been in turmoil, and the chairman and president have been frequently replaced. In September 2016, Zhang Yukun, the then chairman of Shengjing Bank with an annual salary of 3.3 million yuan, resigned. It was rumored that he was involved in bribery in Liaoning. Zhang Qiyang from the central bank system took over as chairman. In April 2019, Zhang Qiyang resigned, and Qiu Huofa from Evergrande Group, the largest shareholder of Shengjing Bank, has taken over as chairman since then.

At the president level, in January 2018, CITIC Bank Zhang Qiang, the former Vice President, served as the President of Shengjing Bank. In January 2020, he served as the Chairman of Guizhou Bank Zhongguancun Xiao Ruiyan, the president of the bank, took over as the president of Shengjing Bank, but he resigned only half a year later. In August 2020, at the age of 50, Shen Guoyong was appointed as President.

The current chairman Qiu Huofa has been in Everbright Bank In the senior management team of Shengjing Bank, there are two female vice presidents from Everbright Bank.

Ms. Zhang Jun, now 50 years old, joined Shengjing Bank in August 2019. She is now the executive director, vice president and chairman of Shengyin Consumer Finance Co., Ltd. During her stay at Everbright Bank, Zhang Jun served as the director of the auto finance center of the company's business department, the full-time approval officer of the credit approval department, and the deputy general manager of the credit approval department. In 2020, Zhang Jun's pre tax salary will be 3.296 million yuan.

Ms. Li Ying, now 53 years old, joined Shengjing Bank in March 2020 and is now the Executive Director, Vice President and Chief Risk Officer. During her work in Everbright Bank, Li Ying successively served as Deputy General Manager of Risk Management Department, Deputy General Manager and Deputy General Manager (General Manager level) of Special Assets Operation Management Department. In 2020, Li Ying's pre tax salary was 3.165 million yuan.

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