Bank of China starts move to reduce salary gap among staffers

BEIJING, Aug 14 (Reuters): Bank of China Ltd, China's fourth-largest lender by assets, has launched a countrywide exercise to reduce the salary gaps among its employees and mid- and high-level managers in response to Beijing's "common prosperity" drive, three sources with knowledge of the matter said.
President Xi Jinping launched the common prosperity drive in 2021 as an effort to reduce income inequality, which could threaten long-term economic growth and even the legitimacy of Communist Party rule.
Bank of China didn't immediately reply to a Reuters' request for comment. The move follows pay cuts being made at investment banks such as China International Capital Corp.
Commercial banks have suffered record low profit margins due to disruptions from the embattled property sector and local government debt risks in a faltering economy.
The sources said Bank of China has launched an internal "salary management system reform plan", after an inspection team under the Central Commission for Discipline Inspection found the bank's pay system has issues of "wealth inequality" in several rounds of investigations since late last year.