Senior executives of Bank of China (BOC), the country's third-largest lender by market value, saw hefty cuts in their salaries in 2009 despite a profitable year, thanks to the government's effort to narrow the wealth gap, cnstock.com reported Wednesday.
BOC kicked off the full-year earnings season of Chinese banks on Tuesday by reporting a net profit of 81.07 billion yuan for 2009, a rise of 26 percent year-on-year.
However, the bank's annual report showed that Chairman Xiao Gang and President Li Lihui were paid salaries worth 759,000 yuan ($111,000) and 755,000 yuan last year, down 49.6 percent and 51.1 percent, respectively, from 2008. Two vice presidents, Li Zaohang and Zhou Zaiqun, also saw their salaries cut by 51 percent.
The report said the salary cuts were a response to calls to regulate the incomes of State-owned enterprises' senior executives, which was written in the government work report delivered by Premier Wen Jiabao during the annual parliamentary session this month.
Meanwhile, the ministry of finance and the China Banking Regulatory Commission also issued salary supervision guides to domestic financial institutions and commercial banks this year.