With the disclosure of the annual reports of Listed Companies in 2021, the executive compensation of listed companies has also been paid attention again.
According to the statistical data, the reporter of Securities Daily found that as of April 1, 2022 (the same below), in terms of management compensation, there are three listed companies whose total annual compensation of senior executives does not exceed one million yuan Chunghsin Technology Group Co.Ltd(603996) , Yunnan Aluminium Co.Ltd(000807) , Shaanxi Heimao Coking Co.Ltd(601015) ranked last among the 1201 A-share listed companies that have disclosed the data with 95200 yuan, 240000 yuan and 920000 yuan respectively.
In terms of per capita salary, the per capita annual salary of executives of five listed companies, including Chunghsin Technology Group Co.Ltd(603996) , Yunnan Aluminium Co.Ltd(000807) , Lanzhou Zhuangyuan Pasture Co.Ltd(002910) , Great Wall International Acg Co.Ltd(000835) , Chalkis Health Industry Co.Ltd(000972) and so on, does not exceed 110000 yuan. It is worth noting that three of them have St. specifically, the average annual salary of executives of these five companies is 23800 yuan, 60000 yuan, 98300 yuan, 102100 yuan and 109200 yuan respectively.
manager compensation is positively correlated with enterprise performance changes
Among the 10 companies with the lowest total executive compensation of Listed Companies in 2021, 8 are listed companies in traditional manufacturing industry and coke processing industry, and the other 2 are Chalkis Health Industry Co.Ltd(000972) in agricultural and sideline food processing industry and Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) in leasing industry.
Chunghsin Technology Group Co.Ltd(603996) , Shandong Longji Machinery Co.Ltd(002363) , Shanghai Prosolar Resources Development Co.Ltd(600193) , Shanghai Zhezhong Group Co.Ltd(002346) are listed companies in traditional manufacturing industry.
Chunghsin Technology Group Co.Ltd(603996) annual report shows that the audited net profit of the company in 2021 is still negative, the operating income is less than 100 million yuan, and the net assets at the end of the period are still negative. The company’s 2021 annual report continues to be issued with non-standard audit opinions, and the company’s shares touch the situation of delisting Great Wall International Acg Co.Ltd(000835) 2021 annual report shows that during the reporting period, the company achieved a total operating income of 2.371 million yuan, a year-on-year decrease of 57.7%, and realized a net profit attributable to the parent company of – 450 million yuan, compared with – 200 million yuan in the same period of last year, with an expanded loss range.
In this regard, Yang Delong, managing director and chief economist of Qianhai open source fund, said that generally speaking, the salary of enterprise managers is positively related to the change of enterprise performance. With good enterprise performance, the salary of senior executives naturally rises, the enterprise performance is poor, and even walks on the edge of delisting, and the per capita salary of senior executives is naturally very low.
three industries decreased significantly
In terms of change range, the three industries of real estate development, medical devices and software development decreased significantly, especially the total annual salary of the real estate development industry decreased by 1.829 billion yuan compared with the same period last year. In addition, according to the financial report data of 2020, it is found that the total annual salary of the industry also decreased the most year-on-year in 2020, with a year-on-year decrease of RMB 229 million.
Specifically, in 2021, China Vanke Co.Ltd(000002) , Financial Street Holdings Co.Ltd(000402) , China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , Yang Guang Co.Ltd(000608) annual total salary decreased by more than 22 million yuan year-on-year.
Such a huge decline in the remuneration of industry executives has something to do with the decline of the company’s annual performance.
China Vanke Co.Ltd(000002) released the financial report for 2021, which showed that during the reporting period, the company achieved contract sales of 627.78 billion yuan, operating revenue of 452.8 billion yuan, and net profit attributable to shareholders of listed companies of 22.52 billion yuan, a year-on-year decrease of 45.7%. This is China Vanke Co.Ltd(000002) the third decline in net profit since 1995 and 2008.
This is also reflected in the annual salary changes of the three main executives of the company. In 2021, the annual salary of Yu Liang, chairman of China Vanke Co.Ltd(000002) board of directors, Zhu Jiusheng, President and Wang Haiwu, director decreased from 12.473 million yuan, 11.231 million yuan and 8.958 million yuan in 2020 to 1.547 million yuan, 5.927 million yuan and 4.378 million yuan respectively, with a year-on-year decrease of 87.6%, 47.3% and 51.2% respectively.
According to the latest news, Yu Liang disclosed at the company’s 2021 annual performance promotion meeting that Vanke has cancelled the group partner level, that is, the usual senior management, and asked everyone to sink to the front line.
Yang Delong believes that while the performance of listed companies declines, executive compensation also decreases sharply at the same time, which to some extent expresses the determination of executives to share weal and woe with the company, which can boost employee morale and set an example.
