CSRC: Securities firms' compensation reform will conduct a performance assessment of chairmen, senior executives, and other key positions for a period of three years or more.

The latest revised "Guidelines for Establishing a Sound Compensation System in Securities Companies" issued by the China Securities Association further standardize the behavior of compensation management in brokerage firms. The new version of the "Guidelines" specifies that the chairman, senior executives, heads of major business departments, branch managers, and core business personnel are included in key positions, with a performance assessment period of 3 years or more, and performance assessments must include long-term indicators. The assessment of the brokerage line includes product matching and risk disclosure effectiveness; the assessment of the proprietary trading line includes investment stability and countercyclical positioning; the assessment of the asset management line includes long-term investor returns; the assessment of the derivatives line includes the proportion of transactions with entities, banks, and wealth management subsidiaries; the assessment of the investment banking line includes servicing national strategic situations; and the assessment of research institutes includes the role of interpreting industry policies and other think tank functions. Compliance and risk control indicators are no longer based solely on external penalties, but also consider ethical business practices, compliance effectiveness, and risk management effectiveness. Social responsibility indicators are refined to include specific content such as professional ethics construction, investor protection, rural revitalization, and social welfare.