The new roles include senior managing director and director, the people said, asking not to be identified because the process isn’t public. The Chinese bank has adopted this approach at a time when it is challenging to give significant pay increases or bonuses, the people said, despite the pickup in deal activity.
Senior managing director would be the higher role, followed by managing director, executive director and then director, the people said.
A representative for CICC didn’t respond to requests seeking comment.
While the industry in China has found room to give pay bumps to some junior staff, it’s proved more difficult at senior levels, particularly as the Chinese government has singled out and criticized bankers for being “hedonistic.”
Still, a sharp increase in deal flow has put bankers in high demand and on the lookout for opportunities. Activity is being driven by mainland China-based firms looking to list in Hong Kong, as well as issuances of convertible and exchangeable bonds. The volume of deals including mergers and acquisitions involving Chinese firms this year is up 54% from the same period in 2024 to $261 billion.
Bloomberg News reported Tuesday that CICC’s head of equity sales in Hong Kong has left to join AI chipmaker Shanghai Biren Technology Co. And Yang Sulan, who was head of consumer investment banking, departed last year to become deputy chief executive officer at CGS International Holdings. Technology, media and telecommunications banker Victor Jiang also left for Deutsche Bank AG.
CICC, which historically paid bankers on par with the likes of Goldman Sachs Group Inc., has carried out some major pay cuts in recent years. Compensation for some senior bankers for 2022 was slashed by more than 40% following a tough year for the business, and then last year it took the rare step of demoting senior bankers and cutting their pay to reduce costs, Bloomberg reported.
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