**CICC to Distribute 2024 Bonuses After Delays Amid Industry Changes**
China International Capital Corp. (CICC) is preparing to distribute its 2024 bonuses following a significant delay caused by a crackdown on banker compensation and ongoing acquisition discussions. The Beijing-based investment bank plans to offer bonuses equivalent to approximately two to three months of base salary, according to sources familiar with the situation who requested anonymity due to the confidential nature of the matter. CICC has not yet responded to requests for comment.
In recent years, China’s investment banks have faced increasing pressure to limit compensation amid a broader government initiative targeting private enterprise. Bankers have been labeled “hedonists” for their extravagant lifestyles, and high-earning finance professionals have been particularly affected by President Xi Jinping’s campaign for a more equitable distribution of wealth. As a result, firms have reduced perks and imposed salary caps for senior executives at 2.9 million yuan.
The upcoming bonuses come after employees received only modest payouts in previous years, with many experiencing base salary reductions of 25% to 30% starting in 2023. CICC had withheld bonuses for at least six months while negotiating the acquisition of two smaller domestic brokerages, a move aligned with China’s strategy to develop top-tier domestic investment banks capable of competing with global leaders.
Business conditions are improving for CICC and other brokerages, as deal-making activity and market performance have rebounded. The firm’s net income for the first nine months of the year has more than doubled compared to the previous year. CICC has also maintained its position as a leading investment bank for initial public offerings (IPOs) in Hong Kong, ranking first in the city for IPOs this year, according to Bloomberg data. However, competition remains fierce domestically, and CICC has not held the top IPO position since 2018.
In contrast to CICC’s bonuses, compensation on Wall Street is expected to reach record levels this year, driven by substantial profits from rising stock prices and a resurgence in deal-making after a prolonged downturn.
**FAQ**
**What factors contributed to the delay in CICC’s bonus distribution?**
The delay in CICC’s bonus distribution was primarily due to a crackdown on banker compensation in China and ongoing negotiations for the acquisition of two smaller domestic brokerages.
