"China plans to cap the annual salaries of financial workers at around 3 million yuan (US$412,460), as the government doubles down on its campaign to eradicate extravagance and hedonism from the industry and narrow the wealth gap amid a persistent downturn in economic growth, according to people familiar with the matter.
The limit will be applied to all state-backed brokerages, mutual fund firms and banks, except financial institutions backed by private investors, the sources said, adding that the information is not meant to be made public.
The measure will be applied retroactively, meaning those who earned more than 3 million yuan over the past few years will probably have to return the excess money to their companies, the sources said."
If it works fine and it’s really retroactive they can always retroactively do that too.
Either way, It’s a nice solution that people might not even talk much about because it always looks impossible but hopefully they do something like this to show the world it can be done and hopefully they continue it with things like 100% taxes for billionaries and lower it with time as well.