What’s new: The average salaries earned by top executives at China’s domestically listed companies declined last year, reflecting weaker profitability amid a slowing economy and stock market volatility.
The average pay for listed companies’ chairmen fell 3.32% in 2023 from the previous year, while salaries for general managers, board secretaries and chief financial officers dropped 3.46%, 1.12% and 3.82%, respectively, according to a report by Shanghai Rongzheng Enterprise Consulting Service (Group) Co. Ltd. based on a survey of 5,326 companies traded in Shanghai and Shenzhen.
The average maximum yearly salary paid by listed companies declined by 3.27% in 2023, the first annual drop, according to the report.
Biopharmaceutical firm WuXi AppTec Co. Ltd. topped the companies in executives’ payments, followed by medical device supplier Mindray Medical International Ltd. and new energy giant Tongwei Group Co. Ltd.
Li Ge, chairman and chief executive officer of WuXi AppTec, was the highest paid executive with 2023 salary of 42 million yuan ($5.8 million). But that is less than half of the 86.5 million yuan earned by Li Bin, Tongwei’s vice president, the top earner in 2022.
The context: Executive compensation was closely linked to company profitability and market conditions, according to the report, which noted that the overall decrease in net profits and volatile stock market performance influenced pay.
The overall net profits of listed companies decreased 1.45% in 2023 from the previous year, according to the report.
Companies largely reduced stock incentive plans in 2023, with a nearly 14% decrease from 2022, indicating a cautious approach amid a less optimistic market outlook, the report said.
Shanghai Rongzheng has been tracking listed companies’ compensation strategies since 1999. This year’s report was based on the financial statements of 5,326 listed companies published before April 30.
Contact reporter Han Wei (weihan@caixin.com)
