In the statistics on the executive compensation of listed companies, executives in industries such as real estate, banking, securities, insurance, and automobile are still leading. Compared with the real estate and finance industries, which have a few hundred, tens of millions or even billions of dollars in compensation, the pay of senior executives of listed auto parts companies appears to be low-key.
How much executive compensation for parts and components companies
Among the 51 listed auto parts companies that announced executive compensation, Zhongda Special Steel Chairman and Party Secretary Zhong Chongwu topped the list of executive compensation of auto parts companies with pre-tax 1973.54 million yuan. It is understood that Fangda Special Steel's main business is rebar, automotive leaf springs, spring flat steel, iron powder and other products, operating revenue in 2013 was 13.214 billion yuan, a decrease of 1.05% over the same period last year. Some analysts believe that after the transformation of Fangda Special Steel Co., Ltd. focused on the production of a variety of spring steel, so the domestic market accounted for 70% to 80%, in addition, the spring steel has a higher profit. The reporter believes that Zhong Chongwu’s salary dominance may be related to Fangda Special Steel's main raw materials such as steel products.
In addition to Fangda Special Steel, the remuneration of executives of the other 50 auto parts listed companies is generally low. There are only five companies with an annual salary of more than one million yuan. They are the chairman and general manager of Jiangnan Plastic Mold Technology Co., Ltd. and Cao Kebo. General Manager Zhang Haitao of Shanghai Automotive Systems Co., Ltd., Chen Ailin, Chairman of Zhejiang Wanfeng Aowei Steam Turbine Co., Ltd., Cao Dewang, Chairman of Fuyao Glass Industry Group Co., Ltd., and Wang Miaotong, Chairman of Zhejiang Century Automotive Industry Co., Ltd., among them Cao Kebo ranked the highest with an annual salary of 1.5 million yuan.
The survey results show that there are 15 companies whose annual returns of top-level parts and components companies are between 5 million and 1 million yuan. Among them, the chairman of Jingwei Co., Ltd. Li Yuyu was 949,000 yuan, the annual salary of Zhou Xiaofeng, the chairman of Ningbo Huaxiang, was 900,000 yuan, and the Fengshen tires chairman and general manager Wang Feng was 654,000 yuan.
In addition, the reporter also found that the executive compensation of four listed companies was lower than 200,000 yuan, including Zhang Lei, Chairman of Mei Chen Technology, which was 180,000 yuan, Liu Ju, Chairman of Hengli Industry, which was 169,900,000 yuan, and Chen Xuqiang, General Manager of Tianxing Instrument. 16.9 million yuan, while the chairman of Camel shares Liu Guoben’s lowest salary was only RMB 121,100.
In this regard, the reporter believes that the low general salaries of executives in the auto parts industry confirm, on the other hand, that the profitability of the auto parts industry is not strong and it is not easy to retain high-level talents.