news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

recently, the topic #female investment bank executive demands salary after monthly salary dropped from 100,000 to 70,000# has become a hot topic.

the cause was a recent disclosure on the china judgments online website that ge (female), who served as the general manager of the investment banking business department of a securities firm, was fined by the regulator for the project she was responsible for. the company reduced ge's salary from 100,000 yuan a month to 71,400 yuan a month, and withheld bonuses from ge's other projects.

therefore, ge filed a lawsuit, demanding that the company pay the difference in salary and project bonuses totaling 704,500 yuan, but ultimately lost the case. according to the information in the judgment, the securities firm involved is huaying securities, and ge, who has worked in the company for 12 years, is ge juanjuan.

a female executive at an investment bank sued the company for a reduction in her monthly salary from 100,000 yuan to 70,000 yuan

according to the judgment, ge joined huaying securities on may 1, 2011, and the two parties signed an open-ended labor contract starting from may 1, 2017. ge was formerly the general manager of business department 1 and has worked in the business development department of huaying securities since february 2023.

as a female executive in the financial industry, ge's salary is also reflected in the verdict. ge's salary standard has been 100,000 yuan/month since 2015, which was adjusted to 102,000 yuan/month in july 2022. in november 2022, due to certain reasons, it was adjusted to 71,400 yuan/month.

regarding the salary cut, ge believed that huaying securities' salary cut decision was not in compliance with the labor contract and the company's legal regulations. on june 19, 2023, the labor contract between the two parties was terminated. on june 16, 2023, ge applied for arbitration to the xx committee, requiring the company to pay the salary difference of 244,800 yuan from november 2022 to june 2023.

the court ruled that, upon investigation, in january 2022, ge had signed a performance responsibility letter, which stipulated the performance requirements during the assessment period, including achieving departmental profitability and achieving a certain income. if the assessment targets are not met during the assessment period, the company will take assessment measures depending on the circumstances, including but not limited to disbanding the department, demotion and salary reduction, job adjustment, termination of labor contracts, etc. party b is willing to unconditionally obey and cooperate with the assessment measures that party a intends to take. if party a determines in its daily assessment of party b that party b is determined to be unable to make a profit during the assessment period or that there is significant uncertainty in its profitability, it may take the above-mentioned assessment measures at any time, and party b is willing to unconditionally obey and cooperate.

in addition, article 16 of huaying securities' "regulations on reporting, handling and accountability of compliance risks and violations" stipulates that economic penalties include withholding bonuses, ordering the return of bonuses, salary cuts, and suspension of salaries.

in the first instance, ge stated that the business department where ge no. 1 worked did not make a profit in 2022, nor did it achieve the assessment targets stated in the "2022 performance responsibility statement". therefore, huaying securities did not act improperly in taking measures to reduce ge's salary within a reasonable range in accordance with the agreement in the responsibility statement.

after receiving a bonus of 2.6 million yuan, the project sponsored was punished

in addition to the salary cut, in this lawsuit, ge also mentioned that huaying securities withheld his bonus of 459,700 yuan, which the company needed to pay.

on june 19, 2023, the labor contract between the two parties was terminated. on june 16, 2023, ge applied for arbitration to a certain committee, requiring the company to pay the difference in wages of 244,800 yuan from november 2022 to june 2023 and a project bonus of 459,700 yuan. later, the arbitration committee decided to terminate the trial. ge was dissatisfied with the decision and sued the court.

huaying securities believed that there were faults in the projects that ge was responsible for in the past, and the company decided to deduct the corresponding bonuses for the projects. however, since the bonuses for the relevant projects had already been paid, the remaining unpaid bonuses were not sufficient to offset the deduction, so they were deducted from the unpaid bonuses for other projects.

it is understood that in january 2020, the shandong securities regulatory bureau issued a warning letter to huaying securities, zhang guoyong and fan guangzheng, as the independent financial advisor for longli bio's major asset reorganization, and ge's subordinates zhang guoyong and fan guangzheng, as the financial advisors of the project. they failed to promptly discover that longli bio had misappropriated funds, issued false continuous supervision reports, conducted some due diligence work in an irregular manner, and had incomplete preservation of some working papers.

on october 27, 2020, the china securities regulatory commission issued a decision to issue a warning letter to huaying securities, stating: "in the projects such as andeli's initial public offering and listing (ipo), you failed to strictly follow the project approval procedures, and decided to take administrative supervision and management measures against your company by issuing a warning letter."

in addition, in november 2021, huaying securities was fined again for longli bio. the shandong securities regulatory bureau issued a warning letter to huaying securities and two sponsors. after investigation, huaying securities, as the sponsor of longli bio's initial public offering and listing, and yue yuanbin and ge juanjuan, as sponsors, failed to perform the full verification procedures diligently and responsibly, and the opinions issued contained false records and other violations.

on june 2, 2021, huaying securities issued a "decision on disciplinary actions against personnel related to the longli biotech major asset restructuring project", informing that due to the illegal misappropriation of raised funds in the project, it decided to deduct ge's bonus of 127,300 yuan. on the same day, huaying securities issued a "decision on disciplinary actions against relevant departments and personnel of the company for regulatory measures of warning letters", informing that due to the failure of the andeli project to strictly implement the project establishment procedures, etc., it decided to conduct a compliance talk with ge and deduct ge's performance bonus of 20,000 yuan.

huaying securities pointed out that due to ge's responsibility, the company was sued for 920 million yuan. the huge losses that the company may suffer and the adverse impact of the case on the company's reputation are also one of the reasons why the company adjusted ge's salary.

the court held that ge had the responsibility to supervise the work of his subordinates, and ge acknowledged in the first instance trial that he had the authority to approve the reports submitted, etc. therefore, it was reasonable for ge to be punished by huaying securities, and the main form of punishment was to deduct the bonus ge received in the project.

the court also pointed out that since ge had already obtained a bonus of more than 2.6 million yuan for the longli bio project, huaying securities' decision to withhold 127,300 yuan from ge's bonus for the project was also reasonable.

longli biotech cashed out 500 million in 9 years

so what is the current status of the projects that ge is in charge of?

longli bio was delisted in july 2020 due to prominent systematic fraud. phoenix finance's "investment observation" found that longli bio was listed on july 28, 2011, and since april 2012, the company's major shareholders have begun to sell off their holdings and cash out.

wind data shows that less than nine years after longli biopharma went public, its stock market value evaporated by 99%, and major shareholders cashed out 522 million yuan. at that time, huaying securities, as the sponsor, received 65.114 million yuan in underwriting and sponsorship fees.

in fact, huaying securities has received quite a few penalties for its investment banking business in recent years. in 2022, huaying securities received two warning letters from the jiangsu securities regulatory bureau and the yunnan securities regulatory bureau respectively for failing to perform its duties diligently in the souyute convertible bond project and the "21 chuxiong 01" bond project.

in may 2021, the shanghai stock exchange issued a regulatory work letter to huaying securities for failing to perform its duties in the private placement of corporate bonds by qingdao ronghai state-owned capital investment and operation co., ltd.

in february 2021, the jiangsu securities regulatory bureau issued a regulatory concern letter to huaying securities for having a high proportion of withdrawn and rejected ipo projects, poor quality of investment banking practices, and lax internal quality control.

from the beginning of this year to date, huaying securities' ipo withdrawal rate has reached 42.86%. among the 7 ipo companies it sponsored, 3 of them voluntarily withdrew.