China’s top brokers downgrade senior bankers’ travel perks to cut costs: report
Managing directors are asked to fly coach for domestic travel.
China’s two largest investment banks have reportedly asked senior bankers to fly coach in order to reign in costs and boost profitability, reports Bloomberg.
Starting July, CSC Financial managing directors’ domestic travel will be downgraded to economy flights and second class or hard-berth train seats, according to a memo seen by Bloomberg. Larger rival Citic Securities has also reportedly asked managing directors to fly coach, according to a separate memo.
CSC Financial’s Chairman Wang Changqing is also affected by the downgrades, and will now travel first class instead of the more expensive business by train, according to the broker’s memo.
Commuting costs in and out of airports will no longer be reimbursed as expenses but include a transportation allowance of 80 yuan ($12) per day, according to memos from both institutions.
Citic Securities also cut daily hotel allowances for non-executive bankers by 200 yuan to 700 yuan per day in major cities from Beijing to Shanghai, according to a person with knowledge of the matter, who asked not to be identified.
Here’s more from Bloomberg.
Photo from Wikimedia Commons