Last updated: August 13, 2026
One of the biggest challenges for companies in China is to retain talent. The country needs to make sure to provide candidates with an added value in their job proposition to do so. As an executive search firm, we have seen how job satisfaction, career progression, and work-life balance have become more and more important, in addition to remuneration packages.
Executive Search Perspective on Bank Executive Incentives in China
Based on our experience, we can still see that compensation packages are still of great importance, especially in executive positions. Moreover, in a market where there is high competition for talent, a shortage of generational replacement, and most recently a trend of foreign talent leaving China, it is necessary to carefully design payment policies and laws.
Key Figures at a Glance
| Data point | Current requirement | Source |
|---|---|---|
| Performance remuneration invested by senior managers and major business department heads | At least 30% | Asset Management Association of China, 2026 |
| Equity funds within senior management mandatory fund investment | At least 60% | Asset Management Association of China, 2026 |
| Performance remuneration fund managers must invest | At least 40% | Asset Management Association of China, 2026 |
| Deferred performance remuneration for key roles | At least 3 years, generally 40% or more deferred | Asset Management Association of China, 2026 |
China’s regulatory approach to remuneration in securities and fund management has evolved since the original publication of this article. The China Securities Regulatory Commission requires securities and fund institutions to establish long-term and reasonable remuneration systems that reflect compliance and risk management requirements and avoid short-term or excessive incentives. In 2026, the Asset Management Association of China issued a revised performance assessment guideline for fund management companies, replacing the 2022 remuneration guideline.
According to the current guidelines, when designing executive compensation and performance assessment in China’s public fund sector, fund management companies must increasingly consider long-term fund investment returns, investor profitability, compliance and risk control, social responsibility and the sustainable development of the organization.
- The interests and investment outcomes of fund holders.
- Long-term fund performance rather than short-term asset growth alone.
- Compliance, risk management and responsible business practices.
- The sustainable development of the fund management company.
Under the revised 2026 Asset Management Association of China performance assessment guideline:
- Senior managers and heads of major business departments must use at least 30% of their total annual performance remuneration to purchase public funds managed by their company.
- At least 60% of that investment must be allocated to equity funds, unless the company does not offer suitable equity products.
- Fund managers must invest at least 40% of their total annual performance remuneration in public funds they manage, or in other funds managed by their company when direct investment is not possible.
- The required fund holdings must generally be maintained for at least one year.
- Performance remuneration for senior managers and other key personnel is subject to deferred payment arrangements lasting at least three years, with the deferred proportion generally no lower than 40%.
These regulations reflect a broader effort to align financial-sector incentives with long-term performance and investor interests. As an executive search firm, an important question is how remuneration frameworks affect the capacity of financial institutions and fund management companies in China to attract and retain experienced executives while remaining compliant with increasingly long-term incentive structures.
Executive search in China
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Frequently Asked Questions: Executive Incentives and Executive Search in China’s Financial Sector
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