Beijing decided to cap the annual salaries of financial services industry workers at 3 million yuan (US$424,322) last year, as it sought to narrow the wealth gap among professionals in various sectors.
“Linking managers’ salaries with their funds’ performances is fair,” said Ding Haifeng, a consultant at the Shanghai-based financial advisory firm Integrity. “Technically, some of the managers, though overseeing multi-billion-yuan mutual funds, will not be able to get a high salary if they cannot generate good returns for investors.”
Senior managers in mainland China’s top fund-management firms previously received annual salaries as much as 6 million yuan, ranking among the highest paid professionals in the world’s second largest economy. Part of their pay package was based on the size of the mutual funds that they managed.
