Bloomberg recently reported that China’s regulatory authorities summoned foreign investment banks, including Credit Suisse, Goldman Sachs, and UBS. Beijing asked them to lower the total compensation to their executives in China and defer their bonus payments for over three years. The Chinese authorities said their substantial compensation is opposed to the “common prosperity” policy that the Chinese Communist Party (CCP) promoted last year.
These foreign investment banks often hire top CCP officials’ children or grandchildren so that they can use their parents’ or grandparents’ power and influence to bring big business to the firm. In return these financial firms pay them decently and feel that pay is well worth it.
Source: Liberty Times, June 14, 2022