SOEs salaries regulated
- Source: Global Times
- [00:32 September 17 2009]
- Comments
By Chen Yang
Top managers at State-owned enterprises (SOEs) under the direct supervision of the State-owned Assets Supervision and Administration Commission (SASAC) should be given performance appraisal before their salaries and bonuses are paid, according to rules issued Wednesday.
Management pay in SOEs under SASAC is comprised of basic yearly salary, merit pay as well as middle and long-term incentives, such as stock options, according to the rules authorized by the State Council.
Managers' basic yearly salaries are paid by month and should be in line with employees' average salaries of the previous year.
Merit pay will be given in accordance with their annual performance appraisal.
Supplementary insurance and the business expenses of senior management are also included in the new rules. There is now a system in place to govern work-related expenses, which have to be limited.
The average annual pay for senior management in SOEs under SASAC increased from 350,000 yuan ($51,470) in 2004 to 478,000 yuan ($70,294) in 2006, according to SASAC.
The annual pay increase of 460 million yuan ($67 million) for more than 1,500 managers of SOEs under SASAC is reasonable, as these enterprises' profits grow 150 billion yuan ($22 billion) annually, said Li Rongrong, chairman of the SASAC, at a September 5 news conference in Hangzhou, Zhejian Province.
