Analysis of Guosen Securities' 37% Compensation Growth: Alignment with Talent Strategy and Business Transformation

Based on the collected information, I will conduct a systematic analysis of Guosen Securities’ 37% compensation growth and the alignment of its talent strategy with business transformation.

According to the 2024 annual report, Guosen Securities achieved operating revenue of RMB 20.167 billion, a year-on-year increase of 16.46%; net profit attributable to shareholders of listed companies was RMB 8.217 billion, a year-on-year increase of 27.84%[1]. Against this backdrop, the company’s employee compensation increased by 37% against the trend, standing out particularly against the widespread pay cut trend in the securities industry[2].

Guosen Securities delivered strong performance in 2024, providing a solid foundation for compensation growth. The revenue structure showed positive changes: the proportion of investment income increased from 30.76% to 40.93%, a substantial year-on-year growth of 54.93%; net income from handling fees and commissions was RMB 7.658 billion, a year-on-year increase of 18.35%[1]. The performance improvement brought by this “heavy capital + light capital” dual-drive business model has directly translated into room for talent incentives.

Against the backdrop of overall pay cuts in the securities industry, Guosen Securities’ compensation growth strategy is of strategic significance. According to Wind data, the average per capita compensation in the securities industry in 2024 was RMB 539,500, a slight year-on-year increase of only 2.1% compared to RMB 528,400 in 2023[2]. Against this backdrop, Guosen Securities’ 37% compensation growth rate reflects the company’s emphasis on core talents and its determination to compete for high-quality human resources.

Guosen Securities is in a period of in-depth business transformation, with a sharp increase in demand for professional talents. The company’s 14th Five-Year Strategic Plan clearly identifies “Fintech-driven Development” as one of its six core business pillars[3]. Digital transformation requires a large number of compound talents who understand both finance and technology, and the market competition for such talents is fierce, with compensation levels inherently higher than those of traditional business positions.

In May 2025, Guosen Securities officially launched its “Leading 30” wealth management brand, marking the company’s in-depth transformation from a traditional product sales model to a buyer-side investment advisory service model[4]. This brand divides wealth management into three levels: product research, strategy development, and customer service, and builds a “1+N” customer service system to provide customized wealth solutions for clients.

• The buyer-side investment advisory model requires a large number of high-quality investment advisors and asset allocation experts
• The 37% compensation growth is mainly used to attract and retain professional talents in the wealth management field
• The number of investment advisors increased from 77,016 at the end of 2023 to 80,320 at the end of 2024, a growth rate of 4.29%[5], showing Guosen Securities’ active expansion in this field

Guosen Securities positions fintech as a strategic highland, and systematically promotes digital transformation through the “Five Transformations” system (transform awareness, transform organization, transform methods, transform culture, transform model)[3]. The company has built the “Huixin” integrated artificial intelligence platform, creating large model agents covering various application fields, which are widely used in intelligent documents, intelligent working papers, intelligent investment advisory, bond assistant, compliance assistant, and other aspects.

• The new-generation core trading system was successfully launched, with processing speed reaching microsecond level
• A total of 80 technology patents have been filed in the past three years, and 50 computer software copyright registrations have been obtained
• In the 2025 spring recruitment, Guosen Securities actively released demand for fintech-related positions[5]

Guosen Securities’ investment banking business has strengthened the “Investment Banking + Research + Investment” industrial collaborative service model, enhanced regional and industrial layout, and improved comprehensive service capabilities covering the entire corporate lifecycle[1]. In terms of digitalization, as early as 2018, the company took the lead in the industry to realize in-depth digital management of the entire business and process of equity and debt financing, and built 19 intelligent investment banking tools[6].

• Compensation growth helps attract compound investment banking talents with industrial background and digital capabilities
• The application of digital tools reduces labor consumption in basic work, allowing talents to focus more on high-value businesses
• Attention needs to be paid to the performance pressure of the investment banking business against the backdrop of tightened IPO review

Reserving information technology talents is a core challenge for digital transformation. According to data from Huari Institute, in 2022, 26% of securities firms saw a cumulative increase of over 50% in information technology personnel compared to 2020, and 43% of companies had information technology personnel accounting for more than 6% of their total workforce[6].

• Established a Fintech Committee to provide overall leadership for the advancement of digital finance and fintech work
• Built a digital team with product managers as the core
• Continuously strengthened talent cultivation cooperation with universities

• Forward-looking Layout
  : Investing in talents against the trend amid the industry pay cut wave helps seize the initiative in competition
• Clear Transformation Directions
  : The two main pillars of wealth management and digitalization are clear, making talent recruitment targeted
• Strong Performance Support
  : 27.84% profit growth provides sustainable support for investment in compensation

• Cost Pressure
  : The 37% compensation growth rate is relatively large, requiring sustained subsequent performance growth to support it
• Talent Competition
  : The fintech talent market is highly competitive, with leading internet companies and private equity firms also competing for such talents
• Transformation Effectiveness Verification
  : The profit model of the buyer-side investment advisory model still needs time to be verified

• Improve Assessment Mechanism
  : Establish an assessment system centered on client returns and service satisfaction to ensure compensation investment is linked to business results
• Strengthen Internal Cultivation
  : While recruiting externally, increase efforts in internal talent cultivation and transformation training
• Optimize Compensation Structure
  : Appropriately increase the proportion of long-term incentives to enhance the loyalty of core talents

Guosen Securities’ 37% compensation growth is highly aligned with its business transformation strategy overall. This move is both a proactive response to industry talent competition pressure and a necessary investment to support the company’s wealth management transformation and digital upgrading. Judging from achievements such as the launch of the “Leading 30” brand, the accumulation of fintech patents, and the launch of the new-generation core trading system, the talent strategy is effectively being converted into business competitiveness.

However, the 37% high compensation growth also brings cost pressure and sustainability challenges. It is recommended that Guosen Securities, while maintaining investment in talents, pay more attention to the assessment of input-output efficiency, ensure that compensation growth and business transformation results form a positive cycle, and truly achieve the strategic goal of “Talent-Driven Development”.

[1] Guosen Securities Co., Ltd. 2024 Annual Report Summary (http://static.cninfo.com.cn/finalpage/2025-04-19/1223150205.PDF)

[2] Compensation of Most Securities Firm Executives Falls; Annual Salaries Over RMB 3 Million Only Appear at East Money and Huaxin Co., Ltd. (https://www.21jingji.com/article/20250430/b750f2ff4543c3bbf63b44ce3dc8bd3e.html)

[3] Guosen Securities: Using Technology as Pen and Innovation as Ink to Draw a “New Chapter” of Smart Finance (http://www.csrc.gov.cn/shenzhen/c105616/c7546700/content.shtml)

[4] Guosen’s “Leading 30” Wealth Management Brand Officially Launched (http://finance.people.com.cn/n1/2025/0516/c1004-40480928.html)

[5] Securities Firms’ Spring Recruitment in Progress: Expansion of Wealth Management Positions and Accelerated Adjustment of Talent Structure (http://www.news.cn/finance/20250213/f1a1650742a942d68b5a7b6c8433ed9d/c.html)

[6] Investment Banking Digital Transformation Accelerates Again; Consensus Reached on IT and Talent Investment (https://m.cls.cn/detail/1638374)