(A) establish and improve the incentive and restraint mechanism is to implement the requirements of Scientific Outlook on Development. Constructing a scientific and reasonable incentive and restraint mechanism and implementing effective incentive and restraint for senior managers and employees (hereinafter referred to as senior managers (employees)) is to adhere to the people-oriented principle and fully implement the essential requirements and concrete manifestations of Scientific Outlook on Development, which is conducive to straightening out the relationship between operators of rural cooperative financial institutions and various stakeholders, realizing the consistency of incentive mechanism with moral concepts, business objectives, development objectives and external environment, and promoting the coordinated, sustained and steady development of rural cooperative financial institutions.
(2) Establishing and perfecting the incentive and restraint mechanism is an important part of establishing a modern financial enterprise system. Establishing and improving the incentive and restraint mechanism, effectively motivating those responsible for decision-making, supervision and execution, and at the same time effectively restraining their performance of duties and promoting their due diligence are the mechanism guarantee for the sustained and healthy operation of rural cooperative financial institutions, which is conducive to accelerating the transformation of rural cooperative financial institutions into modern financial enterprises with clear property rights, sufficient capital, perfect governance, sound functions and good benefits.
(3) Establishing and perfecting the incentive and restraint mechanism is the need to give full play to people's subjective initiative. Constructing a scientific and reasonable incentive and restraint mechanism, organically linking the business performance, performance norms and salary of senior executives (employees), and implementing positive incentives and effective restraints are conducive to stimulating the enthusiasm and creativity of senior executives (employees), and promoting rural cooperative financial institutions to comprehensively improve their operating efficiency and the level of serving agriculture, rural areas and farmers.
(D) Establishing a sound incentive and restraint mechanism is an objective requirement for preventing and controlling financial risks. Establishing an effective long-term incentive and restraint mechanism to link the income level of senior managers (employees) with the progress of risk control targets such as credit risk, liquidity risk and operational risk is conducive to improving risk prevention and control capabilities, overcoming short-term behaviors, preventing risk release and diffusion, preventing insiders from controlling and using information asymmetry to infringe the interests of depositors and shareholders, and maintaining the safe and stable operation of rural cooperative financial institutions.
Second, adhere to Scientific Outlook on Development and follow the principle of "four combinations" of encouragement and restraint.
(1) Adhere to the principle of combining incentives with constraints. Rural cooperative financial institutions should establish and improve the incentive and restraint mechanism that rewards and accountability complement each other, balance each other and coordinate with each other. It is necessary not only to embody the distribution incentive with salary as the core, but also to advocate spiritual incentive and give full play to the positive role of incentive mechanism. We should not only prevent improper incentives and weak constraints, but also prevent ineffective incentives and excessive constraints to achieve coordination and balance between incentives and constraints.
(2) Adhere to the principle of combining business development with risk prevention and control. The incentive and restraint mechanism of rural cooperative financial institutions should fully reflect the principle of matching business development with risk control level, taking into account business development objectives, quality objectives, risk control objectives and internal management objectives, so as to achieve sound and rapid development of rural cooperative financial institutions on the basis of risk control, cost reduction, capital adequacy and quality improvement.
(3) Adhere to the principle of combining efficiency with fairness. Rural cooperative financial institutions should establish an incentive and restraint mechanism, adhere to distribution according to work and performance pay, so that the salary of senior managers (employees) is closely linked to the quality of operating results, personal contributions, job responsibilities, work quality and business level. We should not only prevent egalitarianism and "big pot" in distribution, but also give consideration to fairness, so as to prevent unfair distribution caused by excessive income gap and affect internal stability and harmony.
(4) Adhere to the principle of combining short-term interests with long-term goals. To establish the incentive and restraint mechanism of rural cooperative financial institutions, we should correctly handle the relationship between immediate interests and long-term development, link the immediate interests of senior managers (employees) with the long-term development goals of rural cooperative financial institutions around regulatory compliance and sustainable development planning, and effectively overcome short-term behaviors.
Third, establish and improve a scientific and reasonable performance appraisal system.
(A) improve the performance appraisal index system. The performance evaluation index system of rural cooperative financial institutions should at least include four indicators: operating efficiency, business development, risk control and internal management, among which: operating efficiency indicators should include per capita operating profit, asset profit rate, cost-income ratio, etc. Business development indicators should include deposits, various loans, loans for supporting agriculture, loans for small and medium-sized enterprises, and per capita intermediate business volume; Risk control indicators shall include capital adequacy ratio, asset quality, loan concentration ratio, liquidity ratio and provision adequacy ratio (the calculation caliber shall be subject to the provisions of the CBRC); Internal management indicators mainly assess the prevention of various economic cases and liability accidents and the compliance with laws and regulations, as well as the soundness and effectiveness of the internal control system. All legal institutions should increase the weight of risk control indicators and internal management indicators in the performance appraisal system, and their weight should not be less than 30% of the performance appraisal indicators in principle.
(2) Improve the special business assessment system. Rural cooperative financial institutions should further improve the special assessment mechanisms such as organizing deposits, marketing loans, issuing credit cards, and innovating business. Scientifically formulate development plans and reasonably determine the speed and mode of development. They should not directly link individual indicators such as deposit and loan growth and book profit (without provision) with the income of executives (employees), and should not adopt "fixing loans by income" (that is, pushing back the loan scale by income target), ignoring risks and costs, omitting provisions and overestimating profits. It is not allowed to achieve the goal of deposit growth by "sudden increase in deposits" regardless of the cost of funds. Business assessment should completely abandon the practice of taking the number of institutions or marketing as the sole criterion, and should combine the number with income, potential risks and possible losses to avoid moral and operational risks caused by the defects of the assessment mechanism.
(3) Innovative performance appraisal methods. First, establish and improve the bank (institution) level and employee level system. In the same legal person or region, different institutions are graded according to the overall score of performance appraisal indicators, and different institutions of different grades are treated differently to promote inter-agency competition; Establish a grade assessment system for employees according to their business (market) and management (governance) positions, implement unified grades and separate assessments, fully mobilize the enthusiasm and creativity of employees, give play to their own business or management expertise in each position, and give full play to their talents. The second is to implement a classified assessment system. Provincial industry management departments should combine the business scale, geographical characteristics and institutional nature, and divide the legal person institutions within their jurisdiction into several categories, implement homogeneous and similar comparisons and salaries, and improve the rationality of assessment. The third is to implement a relative scoring system. Except for the direct scoring or deduction of individual rigid indicators, other assessment indicators determine the comparison benchmark number by calculating the average value of institutions under their jurisdiction or institutions within this category, and compare the indicators of corporate institutions with the benchmark number to calculate the score, so that all corporate institutions pay attention to their own vertical development speed and the average level and progress of horizontal industries within the system.
(4) Broaden the extension of performance appraisal. Provincial industry management departments should give full play to their guiding role, broaden the extension of performance appraisal based on the performance appraisal index system on the premise of ensuring quality and preventing risks, vigorously carry out the activities of striving for Excellence, actively explore and implement the selection activities such as "quality outlets", "top ten management", "top ten business growth", "single progress award" and "special encouragement award", and constantly promote rural cooperative financial institutions to strengthen the construction of outlets and accelerate the pace of business development.
Fourth, further improve the incentive and effective salary distribution system.
(1) Further optimize the salary structure. The remuneration of senior executives (employees) of rural cooperative financial institutions should be composed of fixed remuneration, current performance remuneration and long-term risk-adjusted income. According to the ratings of institutions and senior executives (employees), reasonably determine the fixed salary on the basis of ensuring the basic needs of life, and strictly limit the excessive fixed salary; It is necessary to gradually reduce the current performance pay and effectively prevent the short-term behavior of executives (employees) who take excessive risks in pursuit of high income in the current period; We should gradually expand the proportion of long-term salary incentives by exploring the establishment of salary deferred payment system, the establishment of equity option incentive mechanism, the improvement of endowment insurance, the design of several welfare plans and other long-term risk-adjusted income methods.
(2) Reasonably determine the salary increase. Rural cooperative financial institutions should reasonably determine the salary increase according to performance appraisal and regulatory rating. In principle, the average salary increase in the current year shall not exceed the profit increase after the accrual in the current year, and the salary increase shall be limited to be too high. If the comprehensive progress of performance appraisal declines or the comprehensive level of supervision rating declines, in principle, the salary of senior managers (employees) shall not be increased; If the operating loss increases in that year, the performance salary of senior managers (employees) should be reduced accordingly. At the same time, it is necessary to reasonably set the salary differential of senior executives (employees) at all levels and positions, and limit the salary differential to be too large.
(3) standardize the salary distribution procedure. Rural cooperative financial institutions should set up a remuneration committee under the board of directors (director) to be responsible for the formulation and implementation of the remuneration distribution plan. On the basis of soliciting the opinions and suggestions of the workers' congress, the salary distribution plan shall be submitted to the shareholders' (members') congress for voting after deliberation by the board of directors (directors), and shall be implemented after being reported to the superior industry management department for the record. The salary distribution plan of rural cooperative financial institutions shall be filed with the local regulatory authorities afterwards.
Five, accelerate the construction of a strong mutual supervision system.
(A) to build a mutually restrictive organizational structure. The organizational structure of rural cooperative financial institutions should reflect the principle of separation of business processes and responsibilities. First, front-office operations and transactions, middle-office monitoring and management, and back-office monitoring and evaluation should be separated, and a supervision and restriction mechanism between processes and posts should be established. In the main business areas such as counter business, credit business, fund business, intermediary business, accounting, computer information system management, internal supervision and error correction, corresponding departments and posts should be set up according to the requirements of line management and graded responsibility. Second, the compliance management function should be separated from the internal audit function, and the performance of the compliance management function should be independently evaluated by the internal audit department on a regular basis, and the responsibilities of the compliance management department and the internal audit department in compliance risk assessment and compliance testing should be clarified. The third is to establish a cooperation mechanism between the compliance management department and the risk management department in compliance management, and strengthen the supervision and inspection of the front and back offices from two aspects of compliance risk and operational risk. The evaluation of the front and back office by the Compliance Management Department and the Risk Management Department should account for a considerable proportion in the department assessment.
(2) Further improve the information disclosure system. Rural cooperative financial institutions shall make complete, detailed, accurate and timely information disclosure on asset quality, profitability, risk status and changes of major shareholders, and make special and detailed disclosure on managers' remuneration in the annual financial report, so as to improve transparency and strengthen market supervision and restraint.
(3) Explore the establishment of a manager system. Rural cooperative financial institutions should explore the establishment of a professional manager system, openly select and recruit outstanding managers for the market, and gradually form a scientific and fair manager assessment and restraint mechanism. Managers who have dereliction of duty and illegal acts may not serve as managers or directors for a certain period of time or for life. At the same time, it is necessary to strengthen the restraint of managers' professional ethics and strive to cultivate and improve managers' professional ethics.
The sixth is to effectively establish a hierarchical accountability mechanism with clear responsibilities.
(A) the establishment of employee ethics fund related assessment system. Provincial industry management departments should supervise and guide rural cooperative financial institutions to actively explore the establishment of moral funds for all employees, including senior managers, and related assessment systems in combination with the CBRC's Guidelines on Professional Ethics for Employees of Banking Financial Institutions, and extract a certain proportion from the total wages of employees as moral funds, and implement a moral assessment system, and adjust the amount of moral funds every year according to the assessment and accumulate them year by year. According to the annual assessment results and risk release of employees in a certain period after leaving their jobs, we can improve the long-term loyalty of employees, motivate employees to consciously abide by professional ethics, and promote the sustained and steady development of rural cooperative financial institutions.
(two) the implementation of institutions or employees level promotion and elimination system. Link the grades of institutions and employees with performance, and adjust the grades of institutions and employees in time according to the results of performance appraisal, so as to truly realize the rise and fall of grades and break the "big pot" phenomenon. Warn and prompt the institutions and employees whose assessment results are unqualified, and enhance the sense of crisis, urgency and responsibility of senior managers (employees).
(3) Implementing a performance appraisal system for directors (managers), supervisors and senior managers. Regulators at all levels should assess the performance of directors, supervisors and senior managers of rural cooperative financial institutions every year, fully listen to the opinions of the superior industry management departments and relevant departments of the local government, and make a reasonable and fair evaluation in combination with daily supervision. At the same time, it is necessary to actively explore quantitative performance appraisal methods, strengthen the daily performance appraisal of directors, supervisors and senior managers of rural cooperative financial institutions, register and score in time, and improve the scientificity and rationality of performance appraisal.
(4) Intensify the investigation of case responsibility. The director of rural cooperative financial institutions is the first person responsible for case prevention and control, and should fully assume the responsibility for case prevention and control. The president (director), the person in charge, the person in charge of supervision, inspection and business departments are the second responsible persons. Passive discovery of cases, as well as similar cases with repeated homogeneity, must be carried out in strict accordance with the requirements of "four questions in one case", "two-level pursuit" and "double-line accountability". At the same time, regulators at all levels should combine the prevention and control of cases with market access and regulatory rating, and implement "the case must be alerted".
(5) Clear division of responsibilities. First, the general meeting of shareholders (members) is the highest accountability institution, which is responsible for the accountability of directors, supervisors and shareholders for their violations; The board of directors will be responsible for investigating the violation responsibilities of managers and employees; The Board of Supervisors is responsible for supervising internal accountability at all levels. If the accountability is not in place, the board of supervisors has the right to put forward relevant accountability and inquiry suggestions to the shareholders (members) meeting. Second, the industry management department is responsible for guiding, inspecting and supervising the accountability of rural cooperative financial institutions within its jurisdiction. For the violations of senior managers of rural cooperative financial institutions within their jurisdiction, the higher-level industry management department has the right to put forward accountability suggestions. Third, the regulatory agencies should punish the senior managers of rural cooperative financial institutions within their jurisdiction for violations according to law and instruct the institutions to strengthen internal accountability. The construction of incentive and restraint mechanism of rural cooperative financial institutions involves many stakeholders, strong policies and complicated situations. The industry management departments of rural cooperative financial institutions should strengthen guidance, inspection and supervision, strengthen communication and coordination with local party and government departments, and put forward specific implementation opinions in light of the actual situation within their respective jurisdictions. Regulators at all levels should strengthen supervision and inspection, effectively ensure the implementation of various incentive and restraint mechanisms, and report the difficulties and problems in implementation to the CBRC in a timely manner.