Annual Report 2012

5 MANAGEMENT DISCUSSION AND ANALYSISBuilding of the “new generation core banking system” is an all-round restructure of the Bank’s current application systems. The Bank’s goalis to establish a unified and centralised IT platform, and a lasting mechanism that ensures business innovation, process re-engineering andtechnological innovation, in order to support and lead the Bank in its comprehensive, multi-functional, and intensive operations in the future.In 2012, the Bank completed its capacity requirement planning covering six business value chains, and the major part of an enterprise-levelmodelling, which includes process model, data model, product model and user experience model. The requirements for development of theapplications and application components in the first phase of the project were set. Having adopted the advanced service-oriented architecture(SOA), the Bank built 12 application platforms covering seven layers of application structure. Based on these 12 application platforms, the“new generation core banking system” will be developed. The actual building of “new generation core banking system” started from October2012, and 13 projects were initiated, including corporate cash management, household cash management, financial markets, custody, agencycollection and payment, and off-site audit projects.The Bank optimised the existing systems to support business development. It added multiple functions such as registered capital verificationservice, agency sales of US dollar funds, and cash withdrawal from ATMs without a card. It established customer behaviour database andsupported deeper data analysis of personal customer information, in order to identify customers’ behaviour and support marketing initiativesmore accurately. It also optimised the functions of retail scorecard application and behaviour model, aiming at improving the comprehensive riskmanagement system.5.2.8 Staff and Human Resources ManagementAt the end of 2012, the Bank had 348,955 staff members, an increase of 5.92% compared with the previous year (besides, the Bank had21,363 workers dispatched by labour leasing companies, a decrease of 27.85% over 2011). The staff members with academic qualificationsof bachelor’s degrees or above were 185,214, or 53.08%, and the number of local employees in overseas branches and representative officeswas 468. In addition, the Bank had to assume the expenses of 43,805 retired employees. The subsidiaries had 6,335 employees (besides, thesubsidiaries had 281 workers dispatched by labour leasing companies). The subsidiaries had to assume the expenses of 22 retired employees.The composition of the Group’s employees by age, academic qualifications and responsibilities is as follows:CategoryClassificationNumber ofemployees% of totalAge Below 30 99,113 27.9031 to 40 95,479 26.8741 to 50 128,575 36.1951 to 59 31,917 8.98Over 60 206 0.06Academic qualification Doctor’s degree 456 0.13Master’s degree 17,490 4.92Bachelor’s degree 171,157 48.18Associate degree 121,887 34.31Post-secondary 22,507 6.33High school and below 21,793 6.13Responsibilities Corporate banking 49,643 13.98Personal banking 178,357 50.20Financial market business 839 0.24Finance and accounting 28,262 7.95Management 18,912 5.32Risk management, internal audit, legal and compliance 12,269 3.45Information technology 22,662 6.38Others 44,346 12.48Total 355,290 100.00The Bank aims to establish an intensive, standardised and scientific remuneration system, which will make due contribution to strategicdevelopment of the Bank. According to the Articles of Association of the Bank, the Bank’s major allocation rules and other significant mattersrelating to staff remuneration need to be proposed to the nomination and compensation committee under the Board for assessment andapproval. Material proposals relating to remuneration allocation are required to be voted and approved by the shareholders’ general meeting,or reported to the competent authorities of the state for approval and filing. Pursuant to relevant government policies, the annual remunerationstandard of the Bank’s directors, supervisors and senior executives needs to be approved by the competent authorities of the state, and deferredpayment for their performance compensation has been implemented.42 China Construction Bank Corporation annual report 2012