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BBC Chinese: China to Adjust Salary Structure for State-Owned Company Management

BBC Chinese recently reported that, starting on January 1, 2014, 72 large central government owned companies started adjusting their management salary structure. These companies include PetroChina, Sinopec, China Mobile, and some banks and railway companies. According to the Ministry of Human Resources and Social Security, after the reform, the salary level of these companies’ leadership teams will very likely decline. In China, the central government owned company management personnel are both corporate administrative professionals and government officials at the same time. The management personnel typically include the Chairman of the Board, the Chief Executive Officer, the Chairman of the Board of Supervisors, and the Top Secretary of the Communist Party branch in the company. The new plan will set the ceiling on the management salaries to be around eight times the average salary of the company’s staff. The current level is around 12 times.
Source: BBC Chinese, January 3, 2015