State firm bosses’ pay cut up to 50%, but concern over perks
Print Edition
TOP executives at state firms saw their salaries cut by up to 50 percent ahead of reforms to cap pay packages, Xinhua News Agency reported yesterday.
China’s Politburo approved the salary reforms last August after some state firm executives were accused of receiving high salaries they didn’t merit.
Reforms began to be introduced this year, though details are still being finalized.
Under the scheme — part of a government austerity campaign — salaries are capped and performance-related.
However, some state firms through prior agreements had already cut the annual salaries of executives to less than 600,000 yuan (US$96,660), according to 2014 figures.
Guangdong Hongda Blasting Co Ltd, owned by Guangdong Province’s state-owned assets supervision commission, paid its top executive 550,000 yuan last year — less than half the 2013 level, Xinhua reported.
Large centrally-administered companies cut executive pay by about 20 percent on average.
Huaneng Power International Inc lowered the annual salary of its top executive from 800,000 yuan to about 650,000 yuan last year, Xinhua reported.
However, some state firm employees and experts claim that while top executive salaries have been cut, they claw the cash back through other benefits, Xinhua reported.
Some were paid higher social insurance premiums, received bonuses from their group’s listed companies or were allowed to use public funds to cover official-related expenses, Xinhua reported.
An executive of a state bank headquartered in Beijing received more than 50,000 yuan in housing allowance per month — tens of times higher than an ordinary employee gets, it reported.
Xu Guangjian, deputy dean of the Public Administration and Policy School with Renmin University, called for salary transparency to curb such practices, reported Xinhua.
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