In a trend following the banking sector, securities firms have also started a wave of “reverse salary recovery”. Recently, several leading securities firms have revised their compensation management systems, initiating reverse salary recovery and deferred compensation, covering departing and retired personnel.
Since June, in the “2025 Annual Shareholders’ Meeting Documents” of several securities firms, proposals for the deliberation and formulation of compensation management systems have been added. They have included clauses on compensation deferral, recovery, and long-term assessments as core terms, putting “reverse salary recovery” on paper. These firms include CITIC Securities, Guotai Junan Securities, CITIC Securities Company, China Merchants Securities, and Everbright Securities among other leading securities firms.
It is worth noting that several securities firms have included clauses for compensation recovery that cover retired personnel.
In the revised compensation management system of CITIC Securities, it is mentioned that if relevant personnel fail to diligently fulfill their duties, are responsible for illegal actions or risks of the company, or if other payment requirements are not met, the company can reduce or stop paying the unpaid portion of the compensation of the responsible personnel, demand the return of all or a certain percentage of performance-based compensation from the year the incidents occurred, and reduce or stop long-term incentives. The scope of compensation recovery includes responsible individuals who have left or retired.
On June 8, the “China Fund News” reported that the most noteworthy aspects of this compensation management system revision are the deferred compensation and recovery aspects.
Regarding deferred compensation, CITIC Securities stated that the company would establish a deferred payment mechanism for senior management compensation in compliance with regulatory requirements. Over 40% of the performance-based compensation for senior management should be paid in a deferred manner, with the payment period determined according to relevant regulations and the actual situation of the company, generally not less than 3 years, ensuring that the performance-based compensation payment period matches the risk holding period.
Everbright Securities and Guotai Junan Securities made similar statements.
In terms of recovery, CITIC Securities mentioned the establishment of a compensation suspension and recovery mechanism. If senior management personnel fail to diligently fulfill their duties within their responsibilities or are involved in personal illegal activities, leading to significant violations or risks that cause significant losses to the company, the company should legally suspend the unpaid portion or all compensation and recover all or part of the performance-based compensation within the specified period. The recovery period for performance-based compensation generally aligns with the period of the responsible individual’s actions. The performance-based compensation recovery provisions apply to retired or former personnel.
Aside from applying to company directors and senior management personnel, the recovery clause at Everbright Securities also applies to former and retired personnel. Meanwhile, the compensation recovery provision at China Merchants Securities targets directors, senior management personnel, and responsible personnel who have had their labor relationship terminated.
Upon approval at subsequent shareholder meetings, the above proposals will come into effect.
According to data from Wind, nearly half of the listed securities firms had an average annual compensation ranging between 400,000 yuan and 620,000 yuan in 2025. CITIC Securities had the highest average annual compensation at 812,800 yuan, with CITIC Securities Company, GF Securities, and other leading securities firms ranking in the top tier, at 799,300 yuan, 772,500 yuan respectively. Shenwan Hongyuan, Huatai Securities, China Galaxy Securities, China Merchants Securities, and Zhongxin Securities had average annual compensations of 681,100 yuan, 669,100 yuan, 616,100 yuan, 554,900 yuan, and 547,800 yuan, respectively.
It is reported that the concentrated revision of compensation systems in securities firms stemmed from regulatory requirements of the Chinese Communist Party. In October 2025, the China Securities Regulatory Commission revised and issued the “Guidelines on Corporate Governance of Listed Companies,” which came into effect on January 1, 2026. These guidelines require listed companies to establish compensation management systems covering mechanisms for determining total wages, executive compensation structures, performance assessments, payment, suspension, and recovery of compensation.