Research On The Legal Regulation Of Executive Compensation In My Country’s City Commercial Banks

The subprime mortgage crisis in 2008 affected my country’s banking industry,the bank profits shrunk sharply,the executive compensation of commercial banks remained high,and many problems were exposed in the executive compensation system of my country’s city commercial banks.In 2010,my country Banking and Insurance Regulatory Commission issued the "Guidelines for the Steady Compensation Supervision of Commercial Banks",which included the management of executive compensation in my country’s city commercial banks into the scope of legal supervision.After more than ten years of development of the executive compensation system of city commercial banks,the salary level of executives in various banks is currently on a downward trend,but in practice,it is found that the legal regulation of executive compensation is still not perfect,and the implementation of executive compensation supervision in city commercial banks Many problems emerged in the process.In the case of Shengjing Bank executives’ salary refund,three bank executives returned nearly 19 million salaries,but it was revealed that they received high salaries again.In the incident of overpayment of executives of Panjin Bank,Panjin Bank actually paid its six executives an annual salary of 12.2209 million yuan for three years,far exceeding the prescribed salary level.The above events all show that my country’s city commercial banks are not very complete in terms of internal supervision and external supervision.This article uses literature research method,case analysis method and comparative analysis method to study the current situation of executive compensation system of my country’s city commercial banks,and finds the following problems: First,the external supervision mechanism is not perfect,and there is a lack of prior review;in my country’s city commercial banks,There is no clear evaluation norm for the performance of executives,and the compensation recovery mechanism is not perfect,and the legal and normative documents are relatively general;second,the remuneration disclosure in the annual report of commercial banks is not transparent,and it is difficult for the outside world to understand the compensation composition of bank executives;third,compensation recovery The return system is imperfect,and the accountability personnel,scope and method of accountability are not clear enough;fourth,the executive performance evaluation system is imperfect,and the correlation between executive compensation and job performance is poor;fifth,the independence of the compensation committee Weak and unprofessional,succumbing to social relations when setting salary levels,or lacking knowledge of bank management and succumbing to more professional executives.The above are the reasons for the problems of executive compensation in my country’s city commercial banks.Aiming at the problems of salary supervision of city commercial banks researched above,this article proposes the following solutions: First,strengthen the vitality of the external supervision system,introduce a preventive inspection system,and carry out the establishment and implementation process of the bank executive governance problem system.External legal supervision;improve the salary supervision system of city commercial banks;second,specify the detailed salary disclosure standard system,publish salary composition plan,incentive plan and other relevant salary information,seize the key sensitive information disclosure,and make it a mandatory norm;third,improve the compensation recovery system;fourth,strengthen the connection between the performance and compensation of bank executives;fifth,improve the independence and professionalism of the compensation committee from the legal system;actively supervise to make up for the failure of internal supervision of the bank.loss.