Source: CCTV.com

03-12-2009 09:18

Special Report:   2009 NPC & CPPCC Sessions

Bizchina Special: Financial Debate

The Chinese government is working on policies to impose salary caps for senior executives of state-owned enterprises. The issue has become a hot topic at the ongoing NPC and CPPCC sessions.

Recent media exposures of sky-high salaries at some state-owned financial institutions have drawn criticism and outrage from the general public. And as the financial crisis deepens, calls for salary caps for senior executives of state-owned enterprises are getting louder. The Ministries of Finance, and Human Resources and Social Security say they're in the process of formulating policies to put those caps in place. And many lawmakers and advisors are in favor of the move.

Wang Dacheng, CPPCC member said "I certainly agree that we should set a ceiling on the income of SOE executives. Income distribution is a serious issue in our country. While the incomes of most people are low, some senior SOE executives earn several hundred million yuan or even more. This does not go well with our national situation. I suggest the annual salary of SOE executives should not exceed one million yuan."

Jia Kang, CPPCC member

Jia Kang, CPPCC member said "The salary management of SOE executives should be carried out as part of the SOE reforms. Otherwise, it doesn't make much sense to simply set a salary cap."

Many CPPCC members agree to restrict income for senior SOE executives as many of these executives are in monopolized industries. But some members wonder whether the government should set a unified level for executives in different industries.