A leading bank with over two trillion in assets is on an upward trajectory, yet its top executive has accepted reduced compensation.
Against the backdrop of declining overall compensation in the banking sector, some have chosen to accept lower pay, while others have taken the initiative to lead salary reductions amid performance pressures.
On June 30, Huishang Bank convened its 2025 Annual General Meeting. President Kong Qinglong chaired the meeting, where eleven proposals were passed. However, a twelfth proposal, a temporary motion submitted by the second-largest shareholder, Zhongjing Group, to "increase the dividend payout ratio to 30%," was once again rejected with 50.2% of votes against.
This marks the fifth time in recent years that shareholders have proposed a similar motion, all of which have failed to pass. The final dividend plan approved by Huishang Bank's board is to maintain a cash dividend of 2.5 yuan per 10 shares, representing a payout ratio of 22%, totaling approximately 3.472 billion yuan. The purpose is to retain profits to supplement core tier-1 capital, addressing narrowing net interest margins and regional lending demands.
It is evident that under the leadership of President Kong Qinglong, Huishang Bank is pursuing a development path centered on stability.
This year marks nearly three years since Kong Qinglong, a post-1975 executive with a PhD in economics from Renmin University, joined Huishang Bank. Prior to this, Kong gained experience at Industrial and Commercial Bank of China and China Minsheng Bank, having served as Deputy General Manager of ICBC's Investment Banking Department and as General Manager of Minsheng Bank's Private Banking Department and President of its Hefei Branch. In August 2023, Kong officially assumed the role of Deputy Party Secretary at Huishang Bank.
According to Huishang Bank's 2025 annual report, Kong Qinglong's pre-tax compensation last year was 900,000 yuan, a slight increase from 896,000 yuan the previous year. However, this figure represents a significant gap compared to his compensation when he served as General Manager of the Private Banking Department and President of a first-tier branch at China Minsheng Bank.
Despite this apparent "downgrade" in income, Huishang Bank's performance has shown considerable improvement during Kong's two-year tenure as President. In 2025, the bank's total assets reached 2.33 trillion yuan, a year-on-year increase of 15.51%, marking the fastest asset expansion in recent years. Its loan balance within Anhui Province historically surpassed 1 trillion yuan. During the reporting period, the bank's operating income was 37.67 billion yuan, up 1.2% year-on-year, while net profit reached 16.93 billion yuan, an increase of 6.3%. The non-performing loan ratio was 0.98%, down 0.01 percentage points from the end of the previous year, and the provision coverage ratio stood at 278.8%.
Following the departure of former Chairman Yan Chen, Kong Qinglong's responsibilities have increased. He is now acting as the head of the Strategic Committee and also serves as the Chief Compliance Officer.
For Kong Qinglong, the effort required to steer Huishang Bank is undoubtedly greater than managing a branch of a joint-stock bank, yet the corresponding rewards have not kept pace. For such banking elites, compensation may no longer be the sole criterion for evaluation. Leading a key provincial financial institution towards healthy development may better realize their professional value.
Around the same time, data disclosed by Bank of Dongguan provides another case study.
In 2025, the annual salary of Bank of Dongguan's Chairman, Cheng Jinsong, was 1.2507 million yuan, a decrease of 643,200 yuan or 33.96% year-on-year. President Xie Yongwei's compensation was 1.1891 million yuan, down 553,000 yuan or 31.74%. The average employee salary across the bank was 279,300 yuan, a decrease of 4.45%.
This indicates that the compensation of Bank of Dongguan's senior executives saw the largest reduction, while that of ordinary employees decreased the least. Concurrently, Bank of Dongguan is actively preparing for its IPO. The bank recently updated its prospectus and application materials with the Shenzhen Stock Exchange, primarily supplementing its 2025 financial data, and its IPO review status has been restored from "suspended" to "accepted."
Considering these two cases together, a noteworthy phenomenon emerges: in an environment of declining overall banking sector compensation, some choose to accept lower pay, while others proactively lead salary cuts amid performance pressures. Amid widespread discontent over pay reductions in the industry, there remains a group of individuals striving to achieve their professional ideals.
However, a practical question arises: when these individuals are willing to accept lower pay for their careers, can banks provide corresponding reward mechanisms at the institutional level? Beyond salary, factors such as career advancement, platform value, and long-term incentives—whether these can become new pathways to retain talent—also warrant deep consideration.
Comments