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國企限薪令 (guóq? xiànxīn lìng): Regulation limiting SOE leaders' salaries

(China Daily) Updated: 2016-04-26 07:45

Li Zhong, a spokesman for the Ministry of Human Resource and Social Security, has told the media that the ministry has urged the salary review department to review the performance salary of State-owned-enterprise leaders in 2015, and requires the SOEs to release detailed salary information to the public through open channels including the enterprises' official websites.

According to public data, 25 provinces and regions have released their reform plan for SOE leaders' salaries to the public, which have placed restrictions on the amount they can earn each year.

A majority of provinces and regions have restricted SOE leaders' basic annual salary to within twice the average salary of employees, and the overall annual salaries of SOE leaders including bonuses are limited to eight times the average salary.

Most of the plans have introduced incentive systems, including performance bonuses and other incentives.

According to the central authority's reform plan, if the SOE leaders fail to perform their duty, the performance salary and incentive salary they have earned may be reclaimed.

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