Sky-high salary sparks debate
Sky-high salary sparks debate
The sky-high salary of Frank Newman, chairman of Shenzhen Development Bank (SDB) sparked a debate, International Finance News reported on Monday.
Newman\’s pre-tax salary went from 15.98 million yuan in 2008 to 17.41 million yuan ($2.55 million) in 2009, an increase of 8.9 percent, according to SDB\’s annual report disclosed Friday. However, SDB\’s capital adequacy ratio and core capital adequacy ratio were 8.88 percent and 5.52 percent respectively, lower than the required standard of 10 percent and 7 percent.
The China Banking Regulatory Commission issued a guideline on top executives\’ salary adjustment in commercial banks, which took effective from March 1, banning payment increases for executives in commercial banks when risk control cost indicators did not reach the standard.
Newman said he was not ready to comment, as the bank would look into the details of the guidelines and discuss the issue in a general meeting of shareholders, but he said the final decision would be made according to the guidelines.
The annual report also revealed that 24 senior executives\’ salaries amounted to as much as 48.98 million yuan, with 11 executives receiving more than 1 million in 2009.
