The reporter learned from the official website of Central China Securities Co.Ltd(601375) that on April 4, Central China Securities Co.Ltd(601375) released the announcement of market-oriented public selection and appointment of president.
The reporter learned that in June 2021, Chang Junsheng applied for resignation from Central China Securities Co.Ltd(601375) director, vice chairman, President and all other positions of the company for personal reasons. Meanwhile, Central China Securities Co.Ltd(601375) said that Zhu Jianmin, the company’s executive vice president, was agreed to perform the duties of President on his behalf until the new president officially took office.
It is worth mentioning that the net profit of Central China Securities Co.Ltd(601375) increased by nearly four times last year, and the recruitment announcement shows that the company’s business objectives include striving to rebuild a Central China Securities Co.Ltd(601375) , in about three years. So who will take over this challenging CEO position? It’s full of expectations.
Central China Securities Co.Ltd(601375) market-oriented selection of new president
“In order to implement the relevant deployment requirements of the Central Committee, Henan provincial Party committee and Henan provincial government on deepening the reform of state-owned enterprises and establish a market-oriented personnel selection and employment mechanism, a president of the company is selected and employed in a market-oriented manner according to the needs of Central China Securities Co.Ltd(601375) reform and development and the regulations of Henan Province on the management of professional managers of financial enterprises.” This is the announcement made by Central China Securities Co.Ltd(601375) on its official website on April 4. The registration time is from the date of announcement to April 16, 2022.
Image source: Central China Securities Co.Ltd(601375) official website
So, what qualifications does the president need? According to the requirements of the announcement, the basic quality standards include high political quality and professional ethics, qualifications required for holding corresponding positions, professional knowledge and work experience suitable for holding positions, organizational and management ability and professional ability commensurate with holding positions, good physical and mental quality and work quality.
Specifically, the job qualification criteria mainly include: having a bachelor’s degree or above or obtaining a bachelor’s degree or above; Have good personal ethics, professional ethics, employment records, industry reputation and industry reputation, have an innocent career history, have no record of discipline violation, violation of laws and relevant punishment and punishment, and have no major losses caused by serious dereliction of duty.
In addition, the qualification criteria for other positions also include: in principle, having been engaged in relevant financial work for 10 years or more, understanding the current situation and development trend of the securities industry, being familiar with the operation mode of securities companies, having served as senior managers (including equivalent positions) of large international and Chinese financial institutions for more than 3 years or at the department level or above of industry regulators, and having relatively rich social resources in the industry. It is worth mentioning that one of the criteria is: management experience in domestic and foreign listed securities companies is preferred.
president’s task target value is based on A-share listed securities companies for industry benchmarking
Central China Securities Co.Ltd(601375) said that the company signed employment contracts, labor contracts, letters of responsibility for business performance objectives and other relevant legal documents with the employed personnel, and implemented tenure system and contractual management. The employment agreement specifies the rights, obligations and responsibilities of the employed personnel, as well as the performance indicators, task objectives, assessment standards, remuneration, performance guarantee, reward and punishment methods and termination conditions of the term of office and each year, as well as the conditions for post dismissal. In addition, the reporter also noted that Central China Securities Co.Ltd(601375) internal personnel can also participate in the competition for professional managers.
It is worth noting that Central China Securities Co.Ltd(601375) also gives a specific reference range for the task target: the task target value is benchmarked with A-share listed securities companies and comprehensively determined with reference to the industry quantile level. The target quantile value is 5-10 points higher than the company’s disposal value to determine the target value for the next year. In principle, it is not lower than the better level of the average value of the previous year and the past three years.
In terms of remuneration, Central China Securities Co.Ltd(601375) said that the remuneration of employed personnel includes basic annual salary, annual performance salary and incentive income. Incentive income includes term incentive, excess profit income and medium and long-term incentive methods such as equity, option and follow-up investment. Provide a highly competitive salary level in the industry as a whole. The employed personnel shall pay basic social insurance, housing provident fund, etc. in accordance with the relevant provisions of the state and Henan Province.
The reporter noted that over the past two years, more and more securities companies have publicly recruited senior executives through market-oriented methods. Previously, such securities companies as Bohai Securities, Guosen Securities Co.Ltd(002736) , China Merchants Securities Co.Ltd(600999) , Anxin securities, Caida Securities Co.Ltd(600906) and so on have adopted this approach.
last year’s net profit increased nearly fourfold
In June 2021, Central China Securities Co.Ltd(601375) announced that the board of directors received the written resignation report submitted by Mr. Chang Junsheng, director, vice chairman and President of the company on June 8, 2021. Mr. Chang Junsheng applied for resignation from the company’s director, vice chairman, President and all other positions of the company for personal reasons. At the same time, Central China Securities Co.Ltd(601375) said that he agreed that Mr. Zhu Jianmin, the executive vice president of the company, would perform the duties of President on his behalf until the new president took office.
Recently, Central China Securities Co.Ltd(601375) disclosed the annual report of 2021. The company achieved an operating revenue of 4.421 billion yuan, an increase of 42.46% year-on-year; The net profit attributable to the parent company was 513 million yuan, a year-on-year increase of 392.04%. With regard to the sharp increase in net profit, Central China Securities Co.Ltd(601375) said that the main reason for the sharp increase in net profit in 2021 was the good performance of its major businesses such as investment banking, investment and wealth management.
According to Central China Securities Co.Ltd(601375) disclosure, the investment banking business has a strong momentum of development. Throughout the year, it helped Zhengzhou Baichuan Huanneng, Zhoukou Kaiwang technology and Shanghai Geoharbour Construction Group Co.Ltd(605598) and other 13 enterprises to achieve listing or passing the meeting. The number of sponsoring enterprises listed and passing the meeting rate ranked ninth in the whole industry by the end of 2021, ranking first in the country; The yield of proprietary investment of Shanghai bonds continued to remain at the leading level in the industry; A number of small and medium-sized enterprises invested have a good development momentum and are expected to be listed and enter the capital market one after another.
The reporter noted that the above-mentioned president recruitment announcement shows that the company’s business plan includes “striving to rebuild a Central China Securities Co.Ltd(601375) , and realize the strategic goal of further expanding, optimizing and strengthening the company in about three years”. It seems that this also poses a great challenge to the new president. So who will challenge the new president?
