1. China Considers Limits on Bank Executive Pay

    China Considers Limits on Bank Executive Pay

    China's crackdown on bank pay is part of its so-called Common Prosperity campaign. Dreamstime Chinese President Xi Jinping’s latest directive for banks to cut “excessive” pay for executives is the latest sign of the breadth of his so-called Common Prosperity campaign, analysts say...

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    1. The directive is nothing short of interference with company autonomy on personnel and compensation decisions, and more of a reflection of a command economy system. But I am not sure how enforceable it will become.
    2. Assuming companies get in line and implement the directive, dictating compensation levels may lead to brain-drain out of the financial sector (or outside of China) as people gravitate to employment opportunities elsewhere. This could impact the performance of those companies that are required to pay their people less.
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