China Orders Pay Cap at State-Owned Financial Cos, People Say

China is set to impose a 1 million yuan ($137,309) cap on the annual income of staff at central government-owned financial institutions, three sources said, expanding a campaign against excess against a backdrop of economic slowdown.

- Reuters

Those whose income already exceeds 1 million yuan will have their payout cut, such as middle and senior managers whose income will as much as halve in an overhaul of the compensation structure at 27 financial giants including the "Big Five" banks, six leading insurers and four major bad debt managers.

The bulk of cuts will be made by shrinking bonuses, said two of the three people, who have direct knowledge of the plan but declined to be identified due to the sensitivity of the matter.