Archives October 2008

New law won’t raise labor cost

The new labor contract law does not increase any labor costs for lawful enterprises, says an article on the website of People’s Daily. The following is an excerpt:

When facing the same labor contract law, enterprises have different views about its impact upon labor costs. As a textile factory owner in Fujian province said, the law tilts in favor of employees, pushing up labor costs and thus squeezing the room for development; while the boss of Anta, a sports shoes producer in Fujian, believed that it does not affect their normal operation and will contribute to merger and restructuring, boosting their development.

On Oct 7, Sun Chunlan, vice-chairwoman of All-China Federation of Trade Unions, told the press that the recent bankruptcy of small- and medium-sized enterprises has nothing to do with the implementation of the labor contract law.

The plight faced by SMEs is mainly because of the worsened international economic situation such as the fluctuation of exchange rates, weak foreign demands and domestic policies about taxation and finance. And the labor contract law in fact does not increase the labor costs of enterprises. The reasons are as follows:

First, the labor contract law does add some labor costs for enterprises that had seldom obeyed the labor law in the past. The previous labor laws and regulations in China already clarified what the employers should pay for employees including salaries, social security, welfare, housing fund and overtime compensation.

The newly enforced labor contract law only adds the requirement that employers should compensate for the termination of labor contracts with employees. So, if employers renew the contracts with employees or employees volunteer to quit their work, employers do not need to pay this compensation.

Second, some employers reduced their labor costs by adopting abnormal practices such as not paying social security for employees before the enactment of the labor contract law.

As a survey conducted in Guangdong province showed, the payment of social security for employees accounts for 2 percent of the total costs of an enterprise. The new labor contract law demands unlawful employers to make the payment of social security, leaving them with the feeling that labor costs have been raised by this new law. But we should note that social security payment is what employers should have offered and thus it does not increase labor costs for employers who have already paid this money to employees.

Therefore, in practice, it is those employers who had adopted illegal practices and seldom obeyed labor laws in the past who believe the labor contract law would increase their burdens.

The growth of an enterprise cannot be achieved at the expense of the legal rights of employees. It is not correct to regard the expenditures that should have been paid by enterprises as their increased labor costs.

The new labor contract law has just stripped unlawful enterprises of their inappropriate profits. It is a protection for lawful enterprises. Instead of weakening their competitive edge, it can bring new growth opportunities for them.

Overseas Chinese urged to come home

The government will continue to promote policies aimed at enticing skilled overseas Chinese to return home to develop their careers and build an innovative country.

“It is the talent pool that empowers China to compete in the campaign of global innovation,” Wan Gang, science and technology minister, said during the 5th Overseas Chinese Forum Worldwide yesterday in Beijing.

The government has always endeavored to cultivate the nation’s technological talent base, and its human resources in regard to the technology fields are now among the best in the world, Wan said.

China is emerging as an ever-popular destination for foreign students, with numbers steadily rising over the past few years, he said.

The country already ranks sixth in the world’s overseas study market, according to the latest research of the China Association of Science and Technology.

“However, the market is still hungry for cutting-edge technological talents,” Wan said at the forum, which attracted more than 200 overseas Chinese from 14 foreign countries.

“The forum aims to be a bridge for overseas Chinese to learn about the favorable policies of the Chinese government, and share cooperative purposes with domestic peers,” Li Haifeng, the chief of the Overseas Chinese Affairs Office of the State Council, said.

“I made the right decision to come back to China and restart my career here,” Xue Lan, chief of Tsinghua University’s Public Policy and Management School, said, after studying and working in America for about 20 years before the 1990s.

However, Xue said that China still has a long way to go to promote “trilateral networks among academia, state and industry”.

The current global financial crisis could increase world unemployment by an estimated 20 million, according to the International Labour Office earlier this month.

Insiders said that although the crisis might also plague China, it could serve as opportunity to entice more overseas Chinese home.

“My former colleagues in America call me every day to consult me on the latest information and chances to work in China since the recent economic crisis hit America,” Wang Dazong, general manager of Beijing Automotive Industry Holding Company, who studied in America and worked for General Motors, told China Daily.

The Overseas Chinese Forum will finish today.

Senior Sourcing Manager (mkt258sz)

Job Title: Senior Sourcing Manager
Location: Shenzhen China
Job Description:
An international commercial furniture manufacturer, this US parent multinational relies on its Shenzhen operation for global supply of commercial furniture market. We are currently searching for a Senior Sourcing Manager, who has sourcing system setting up experience with good management skills.
Be responsible for setting, formulation and implication the sourcing system. Good understanding of material and furniture. Have Strong knowledge where to locate high quality suppliers and good supplier relationship networks.
Responsibilities
1. Responsible for production, commodity and OEM outsourcing. Screen and select suppliers according to their quality, pricing, delivery credibility and service. Cooperate with Quality Department to audit suppliers on a regular and irregular basis.
2. Identifies, research, analyze, and recommend domestic and foreign suppliers. Appraises suppliers capabilities and reliability.
3. Setting and formulating the sourcing system, and maintains a database of suppliers, products purchased and contract terms.
4. Work with engineering team and supporting various transfer projects. Drive material localization for commodity.
5. Work on various global sourcing projects, supporting the overseas business units on their global sourcing and cost saving efforts.
6. Analyze the market purchase price and set target purchasing costs. Negotiate with suppliers to implement the target price. Focus on supplier sourcing activities, supplier management, parts cost management.
7. Source, negotiate and recommend competitive suppliers based on volume cost. Maintain and update supplier base in management system.
8. Lead sourcing team and manage the quality, delivery and cost (saving) performance on various sourcing projects.
9. Be responsible for establishment, implementation and control of policies, systems and procedures.
10. Coach, mentor and otherwise encourage the professional development of other engineers.

Requirements:
1. Bachelor of Science in Material, Engineering or equivalent, additional professional education is preferred.
2. Minimum 5 years related experience, preferably in furniture manufacturing or equivalent companies. A minimum of 3 years in supervisory roles.
3. A regional exposure, particularly to China, will be an advantage. Familiar with the material outsourcing market
4. Strong communication capability and team work sprite. Effective problem-solver and strong sense of urgency.
5. Mature and stable and with due carefulness and timeliness. Strong learning capability and high flexibility. Good interpersonal skills, self-motivated and independent.
6. Good skills in the MS office package is a must. Good business and technical skills
7. Proficient in Mandarin with ability to communicate in English an advantage.
* Please send us your complete resume (both in Chinese and in English to: ‘topjob_mkt258sz@dacare.com'(Please replace “#” with “@”)
* In the email subject MUST you plus the position name ?in either En or Ch ?

Finance Controller (fi194sz)

Job Title: Finance Controller
Location: Shenzhen China
Job Description:
An international commercial furniture manufacturer, this US parent multinational relies on its Shenzhen operation for global supply of commercial furniture market. We are currently searching for a Financial Controller, who has a good understanding of the accounting systems needed to run a manufacturing company.
Leading and developing the finance team in the site to enhance the financial and operational controls. Your outstanding interpersonal and communications skills are required to build confidence and credibility both within and outside the organization. Your disciplined systematic approach to process review, together with a demonstrated capability in aligning governance responsibilities with operational routines will be continually applied in this exciting role.
Responsibilities
1. To set up, implement and maintain the Company’s financial and accounting systems in compliance with company financial Procedures and accounting Procedures.
2. To manage the cash flow and advise management on appropriate actions to minimize working capital. To manage timely and accurate internal and external reporting.
3. To liaise with Banks, external auditors, tax authorities, government authorities, Insurance Companies, etc. Build relationships with various Banking, Government, Customs, Audit, and Tax authorities to ensure compliance with PRC regulations and to maximize profitability.
4. Monitor Monthly/Quarterly/Yearly closing to deliver statutory reports, corporate reports on time and accurately. Coordinate and direct the preparation of the budget and financial forecasts, maintain other planning and control procedures, while analyzing and reporting variances
5. To provide proper framework for proper product and sales costing structure; to develop and implement appropriate product costing procedures and disseminate information to the relevant department for execution.
6. Take the lead to analyze the latest material purchase price and true cost for sales quotation and customer management purpose.
7. Participate in the implementation of a broad variety of business programs including financial planning, analysis of financial and operating data, asset management, cost control etc
8. Organize the information needs of various corporate functions such as treasury, tax, planning, and audit. Review and analyze the operating results.
9. To be responsible for supervising the Finance/Accounting team in the factory as well. To act as the key member of the decision-making process, specifically providing financial expertise and leadership.

Requirements:
1. A university degree major in Finance/Accounting Familiar with both China GAAP, IFRS and US GAAP, CICPA, CPA or CMA is a plus
2. 8+years prior related work experience, manufacturing environment and minimum 4 years in managerial position in Multi-national company environment is must. Experience in focusing on cost control, cash management, financial reporting, tax compliance, and cost-based accounting.
3. Good knowledge in PRC taxation, Foreign exchange and relevant regulations/laws.
4. Fluency in both written and spoken English is a must.
5. Strong interpersonal and communication skills, necessary IT skills, full knowledge with Finance /Accounting systems;
6. Must be honest, analytical, sharp eyes for details, critical and well versed with local accounting practices and conversant with local account reporting requirements.

* Please send us your complete resume (both in Chinese and in English to: ‘topjob_fi194sz@dacare.com'(Please replace “#” with “@”)
* In the email subject MUST you plus the position name ?in either En or Ch ?

Sales Manager (mkt259sh)

Job Title: Sales Manager
Location: Shanghai China
Job Description:
An international commercial furniture manufacturer, this US parent multinational relies on its Shenzhen operation for global supply of commercial furniture market. We are currently searching for a Senior Sales Manager, who is responsible for the development and performance of all sales activities in China.
You will establish plans and strategies to grow sales and expand the customer base individually and through management of the company’s sales team.
Responsibilities
1. Responsible for the performance and development of all company China-based account executives;
2. Develops a sales plan that ensures the attainment of company sales goals and profitability;
3. Building up, training and administration of Sales Team. Making and implement of Chinese marketing strategy.
4. Ensure a steady and programmatic development of sales, develop a steady and beneficial customer base and increase profit. Ensure the validity of selling cost and maintain an effective internal operation system.
5. Develops a sales budget and controls expenses to meet budget guidelines;
6. Initiates and coordinates development of action plans to penetrate new markets;
7. Recruits, interviews, and hires account executives based on criteria agreed upon with senior management;
8. Insures that all executives meet or exceed all activity standards for prospecting calls, appointments, presentations, proposals, and sales;
9. Sets positive example for account executives in areas of personal character, commitment, organizational and selling skills, and work habits;
10. Provides timely feedback to senior management regarding performance;
11. Resolves customer complaint regarding sales and service;
12. Represents company at trade shows to promote products and develop sales leads;
13. Meets personal goals for sales and profitability.

Requirements:
1. Bachelor degree. At least 4 years relevant work experience.
2. Excellent skills of selling, leading and communication.
3. A sound knowledge of Chinese market of furniture or relevant field.
4. Integrity, result oriented and good team player. Strong communication and presentation skill, self motivated to work hard, and can work under pressure
5. Excellent negotiate and communication skill, worked independent and analytic spirit. Positive and quick learner
6. Good speaking and written Mandarin, English will be a plus.
* Please send us your complete resume (both in Chinese and in English to: ‘topjob_mkt259sh@dacare.com'(Please replace “#” with “@”)
* In the email subject MUST you plus the position name ?in either En or Ch ?

Global crisis eating up jobs at home

Yang Xiaxi seldom paid attention to the happenings in the US because he thought they had nothing to do with him.

Laid-off workers of bankrupt toy-maker, Smart Union, board a bus on Friday to downtown Dongguan to find a job. [China Daily]

But now he realizes he was wrong because in a globalized world, a financial crisis on the other side of the globe can cause a person his job even in Dongguan, Guangdong province.

Though he describes himself as an experienced and professional art designer, he has been out of a job since his former employer, Smart Union, folded up 10 days ago. The Hong Kong-listed toy-maker cited weakening US orders and rising costs, to file for bankruptcy on Oct 17.

“It’s a cutthroat job market,” he said yesterday. “Some firms are offering a salary just equal to the province’s minimum monthly salary (about 800 yuan, or $120), which I cannot accept, while others have closed their doors to job applicants even if they are not downsizing their existing staff.”

Manufacturers in the Pearl River Delta region, China’s economic engine, are now struggling to keep afloat after the worst Wall Street meltdown since the 1930s has shrunk the demand for Chinese goods.

Universities in Guangdong have seen fewer firms going for campus recruitments.

Huang Yongping, a teacher in the employment guide center of Guangzhou’s Sun Yat-sen University, said several big firms have cited the global financial crisis as a reason for doing away with or deferring their campus recruitment plans. “And fewer small- and medium-sized firms have approached us this year.”

University students are finding it difficult to get a job in the Yangtze River Delta region, China’s other economic powerhouse, too.

Jobs offered to Zhejiang University students have fallen by about 30 percent compared with last year, said Zhou Min, an international commerce major of the university.

Competition for jobs also looks exceptionally fierce in Shanghai, which houses many financial institutions that have been hit hard by the financial crisis.

Xu Wei, 22, has a prestigious university degree, internship with several multinational companies and is fluent in oral and written English. But the English major of Shanghai International Studies University still cannot get an interview call for a job.

“I have applied online for more than 30 jobs and visited various job fairs but have got no reply,” Xu said.

Tang Xiaolin, director of Fudan University’s career development center, said: “There is no doubt the global financial crisis has hurt job growth in China.”

Worsening the situation will be the entry of 6 million fresh graduates into the job market next year – 7 percent more than this year, according to official figures.

Equal job opportunities called for rural and urban residents

Chinese Vice Premier Hui Liangyu said on Saturday farmers should share equal job opportunities with urban residents, which was key to realize the government goal of doubling farmer’s income by 2020.

Farmers were encouraged to start their own business and local government should work out more favourable policies including preferential taxation and easier market access to help farmers find jobs and business opportunities, Hui said at a prize award ceremony of the elite rural entrepreneurs.

The reform and innovation of the rural banking system should be pushed forward so as to resolve the rural residents’ problem of cash shortage in starting their own business, Hui said.

China vowed to double rural residents’ income from the current level by the end of 2012 as a part of the plan aimed to revitalize the country’s rural area and agriculture, which was proved on the Third Plenary Session of the 17th Communist Party of China Central Committee.

Hui said vocational training for rural people should be enhanced to allow more migrant workers to go back to their hometown to run business.

Proposal Engineer (eng085sh)

Job Title: Proposal Engineer
Report To: Proposal Manager
Location: Shanghai & Nan Jing
Company introduction:
The client is an Italy company, which has become the world leader in automotive and machine tool markets during past 50 years, by offering its customers a combination of advanced products, market knowledge, and commitment to long term global partnerships. Building on these foundations, it has created an international organization able to deliver application, design, and service support virtually anywhere in the world. Its growth has been characterized by a strong commitment to research and development and close cooperation with customers in the automotive, machine tool, appliance, compressor, bearing, electric motors, aerospace, computer, and other industries. For the quick development in China, they are now looking for the talents to join them.
Job Description:

Responsibilities:
1. Define the design, list of equipment, services and limit of scope for the proposal according to the Tender Document / Requirements from the Client;
2. Scrutinize the vendors and supervise the enquiries; Estimates the cost price of equipment and services related to the proposal; Prepare and supervise the proposal documents on time;
3. Propose the solution and corresponding price to the customers;
4. Support sales department to making proposal;
5. Connect strongly with the design/production/testing/quality department to finalize the project and follow up the order proceedings to guarantee the customer request has been fulfilled;
6. Work in liaison with Order Administrators to assure clean execution of orders;
7. Maintain the good relationship with customers and perform a “customer satisfaction”;
8. Based on the target of the company, work out the plan for some project;

Qualifications:

1. Degree/background?University degree of Mechanical Engineering or relevant;
2. Experience?
At least 5 years’ experience in Machine tool, automotive or compressor industrial as gauge management or quality control;
3 years experiences of making quotation and proposal;
Working experience at the engineer factory;
Familiar with production working process and heat treatment;
3. Language?Good English in reading, writing and speaking
4. Other requirements?Good skill on Word, Excel, PPT and others office software?
5. Excellent communication and coordination skills; Flexibility, creativity, aggressive attitude to work in team;
6. Responsible, open-mind and willing to learn; Ability to carry out several tasks at the same time;
7. Flexible, Excellent Team-working.
* Please send us your complete resume (both in Chinese and in English to: ‘topjob_eng085sh@dacare.com'(Please replace “#” with “@”)
* In the email subject MUST you plus the position name ?in either En or Ch ?

Recruiting the Best People You Already Have

Everywhere you look today, you see the elements of another “perfect storm” for recruiters. The economy is in a free fall. Companies are looking at ways to reduce headcount. Recruiting budgets are frozen. Those sought-after “passive candidates” are hunkering down to try to weather the storm, so they’re not taking your calls, if you’re even making them.

What’s a recruiter to do?

Focus on retention. It’s at times like these that organizations earn their employees’ loyalty. As the saying goes, this isn’t my first rodeo. I’ve seen the market soar and tank. The way companies treat their employees in stressful and frightening economic times goes a long way in determining who comes out of these difficult times better positioned to re-take greater market share.

Kevin Wheeler had a great piece earlier this month about framing the future you want and identifying four things you can do now to make that future more likely. But there’s more that we can do internally. I agree with Kevin that keeping in touch with our best candidates and keeping our pipeline active is critical. The importance of using this time to plan and educate ourselves for our own future success cannot be overstated. But one of the first things I learned as a recruiter is “If you’re not recruiting your best people, someone else is.”

Now is the time to make sure that you are reaching out to your own best people and involving them in conversation. You’ve seen economic downturns before and so have they. We know that we’ll come out of these things, and when we do, the phones will start ringing.

Think about it. When the market starts going up again and senior management is confident that the upswing is for real, you’re going to be asked to go out and get the people you need to sustain your company’s participation in the improving marketplace. But so is your competition — and don’t think they don’t know who the best people in your organization are. They’ve got a list of people in the industry that they covet. They may even have had conversations with your people at conferences or on their own.

You need to be reaching out to your best people now. Not necessarily to reassure them, because you can’t promise anyone anything, but to keep the internal lines of communication open. This is no time for HR to take on a bunker mentality behind closed doors. Hiding in your office is never a good idea. You don’t want to start rumors that could actually stoke people’s fears.

Jim: Where are all the HR people?
Joe: They’re in their offices with the doors closed.
Jim: The economy is real bad. They must be planning a downsizing.
Joe: Uh-oh, you’re right. I’ve heard that a lot of companies in this area are cutting jobs. As soon as things pick up I’m going start looking. Better to do it to them before they do it to me!
Jim: You got that right. Hey Bill, did you hear that there’s going to be a RIF soon?

And that’s how it starts. You don’t want to do is give people one more reason to listen to calls from your competition. The other question that comes to mind goes a little differently, but it’s another reason to be focusing on the positive things you can do when things look bad.

Joe: We’re really taking a hit from this economy. I hear a lot of companies are considering layoffs.
Jim: Yeah, HR is probably making a list right now.
Joe: How come you never see HR people on those lists?
Jim: Yeah! I mean we’re not hiring anyone right now. What are they doing? Why not lay off a few recruiters and save the jobs of the people who do the real work around here?

Doesn’t sound pretty, does it? That’s why you’ve got to get out there and be visible. I’ve heard that nobody wants to see HR walking around during a downturn, because people are afraid that we’re looking to see who’s working, who’s busy, and who’s not. Don’t let that deter you. Get out there. Be open and honest in talking with managers and their best staff to see what you can do to help alleviate people’s fears at a time like this. Encourage managers to have staff or town-hall style meetings with employees to give them a chance to speak openly about their concerns. HR needs to be side-by-side with managers at these meetings.

To be sure, there will be some companies letting people go, and yours may be one of them. But no matter what, no matter how deeply you cut, you’re not going to lay off your best people. These are the most valuable assets your organization has. Unless you’re turning out the lights and rolling up the carpets, as long as your firm is around, you want them working for you. These are the people who make your company successful, and will again in the future. That’s why you need to be re-engaging them now, when things look bleakest. You can’t give them double-digit raises or six-figure bonuses, but give them what you can, and possibly what they crave most: open communication.

Remind them of how valuable they are to the company. Stress that management is exploring options how best to weather this storm. Ask for their best ideas of what the company can or should do right now, six months down the road, or a year from now when things are different. Because things will be different. Maybe better, hopefully not worse, but certainly different. Ask them what they think is going to happen. They are closer to the front lines and therefore may be hearing different things than the people in the executive suite are hearing. Treat them with respect and get their input. After all, these are your best people. The same things that make them good at their jobs may also give them insights about where your industry is going.

I brought ideas like this to one company I was working with when they were considering layoffs. I asked senior management what they were planning to do for those employees who remained after the reductions. One manager said, in all seriousness, “We don’t have to do anything for them. They should be HTHJ. Happy to have jobs.” That organization did survive the setbacks it was going through, but has morphed and merged several times since. Many of the best people from that organization have left for the competition or to start businesses of their own. Sure the superstars made it through that round of downsizing, but as soon as it was over, they started looking.

Treating people with respect when things look worst is not just being nice to people, it’s good for business. These are the kind of people you’d have to pay a fortune to get if they were on the open market. Do everything you can now, while they are inside your doors, to keep them there. People are always less likely to look when the economy is bad, but the good people are just as likely to bolt if they see your company behaving badly in bad times. This is an opportunity for your organization to make its reputation. How many times have you heard companies boast about having been in business “X” number of years and never had a layoff? Companies point with pride at a record like that not because they’re nice but because it’s a recruiting and retention tool. They’re working to retain their best and most valuable employees.

Nucor Steel reduces executive perks and will even shorten the workweek from five days to four but doesn’t lay people off. It runs some of the most profitable and efficient steel mills in the world. Lincoln Electric guarantees jobs to employees with just three years of service and has not had a layoff since the 1950s. Its turnover rate is infinitesimal.

Many of us are recruiters, and our job is to find the best people to fill the vacancies in our organizations. But we are also human resource professionals. When vacancies dry up, we need to focus on other things we can do to add value to our organizations.

Get out there. Be visible. Retention is the most cost-effective form of recruiting. And the time to do it is now.

Ping An Insurance Slammed by Fortis’ Crisis, Exec Salaries

As the global financial fiasco bubbles along, China’s Ping An, its second largest insurance company, has found itself in hot water indeed.

Six months ago Ping An invested big in Fortis, a Belgium-based banking and insurance provider. Fortis now looks to be doing a Bear Stearns and that investment may be gone. Earlier this year, Ping An’s attempted fundraising stock issue worth 160 billion yuan caused a crash on the A-share market. And lately news of the salaries of Ping An executives has investors and the public up in arms.?

On the evening of Sept. 26, China Ping An Insurance (Group) Company, Ltd. (Ping An), announced its investment losses for the drop in Fortis’ share price had reached 10.524 billion yuan.

Ping An announced that based on international capital markets and the stock price volatility of Fortis, it will decide soon whether to make provision for asset impairment in its third quarter financial report, at the same time it will reflect market value losses in its income statement.

The notice said that regardless of any provision for impairment, the company’s capital and solvency remain adequate.

According to a conservative estimate, the provision might amount to as much as 5 billion yuan based on 30% ratio for provision. Ping An’s net profit in the first half was 7.102 billion yuan.

At the same time, Ping An stated that neither it nor its subsidiaries have risk exposure to Lehman Brothers, American International Group (AIG), Merrill Lynch, Bear Stearns, Fannie Mae, Freddie Mac or Washington Mutual in the US.

Last November, Ping An invested 1.81 billion euros in the purchase of 4.18% of the shares of Fortis on the secondary market, making Ping An its largest single shareholder. Ping An has gradually increased share holdings to 4.99%, the upper limit agreed on by two sides. This is the Chinese insurance industry’s biggest overseas investment.

On March 19 this year, the two companies separately announced that they will establish a global asset management partnership. Ping An is slated spend 2.15 billion euros (about 24.02 billion yuan) to buy 50% of the shares of Fortis Investment Management, a Fortis subsidiary conducting global asset management business. The deal has not yet been granted regulatory approval, according to Bloomberg Press.

November last year saw Fortis shares selling for around 17 euros, while the latest closing price was 5.20 euros per share, a fall of 21% over the same day. The bank, which is highly important to the regional economy, is on the edge of collapse as seized-up credit markets have made it extremely difficult for it to finance its operations. The governments of Belgium, Luxembourg and the Netherlands are scrambling to shore it up.

On September 26, Fortis Group announced it will replace the current CEO Herman Verwilst with 52-year-old Filip Dierckx. Herman Verwilst took the position after the sudden departure of the former CEO.

Fortis’ second quarter financial statement showed that net profit during that period was 830 million euros, down 49% from 1.62 billion euros netted second quarter a year ago.

In July this year, as Fortis shares fell below 10 dollars, institutions begun selling Ping An shares.

In addition to its floundering investment in Fortis, Ping An caused a huge stir this year among the public and investors with its pay-outs. Pre-tax salaries in 2007 of three directors and senior executives topped 40 million yuan. The pre-tax salary of Ma Mingzhe, president and CEO, alone was 66.161 million yuan (almost $10 million), equivalent to 181,200 per day, the highest of any senior executive of an A-share listed company.
Particular resentment over Ma’s compensation may well be related to two things: first Ping An’s try at launching of a 160 billion yuan refinancing plan on January 21 this year was one of the triggers of the subsequent and continuous A-share slide; and second, Ping An’s share price has fallen from last October’s high of 149.28 yuan to its current lowest price of 48.30 yuan, a fall of 67.64%, a source of great pain for Ping An A-share holders. Against this backdrop, Ma’s 66.16 million yuan a year is conspicuous, and investors and the public see cause to be indignant.

On the last trading day before National Day, Ping An closed at 33.27 yuan on the news of Fortis Group, and fell 8.25% at closing, only one step away from its IPO price.