According to regulations, public companies have an obligation to disclose annual compensation for their management and employees.Media reported that according to data from the Guangdong Bureau of statistics, the financial sectors recorded the highest annual salaries, of over 100,000 yuan. In fact, the media misunderstood the terms "annual salary" and "annual compensation".

"Annual compensation" and "annual salary" are regarded differently in statistics.

"Annual salary" usually means the basic salary, commission salary and bonus, received by management.It’s used in the same way for employees.

"Annual compensation" means the payment and other expenses for services rendered to employees". According to the regulations, annual compensation is made up of salary, bonus, allowance and subsidies; employee benefits; health insurance, endowment insurance, unemployment insurance, injury insurance and birth insurance; housing accumulation fund; employee education funds; benefits; severance payments and other related payments. Normally, the amount of annual compensation is 1.5 to 2 times the annual salary. Therefore, the term"annual compensation" actually referred to the cost of employment to a public company.