Salary Reform Of Central Enterprises In Charge: 7 Restrictions On Vehicle Parking And Going Abroad.

Excerpts: the meeting set down the ceiling standards for the central business executives, such as official vehicles, office buildings, training, business entertainment, domestic travel, temporary travel abroad (border), communications, etc., and explicitly prohibited the regulations and strictly regulated them.

We must strictly enforce financial discipline and strictly prohibit public funds for personal expenses.

Enterprises are strictly prohibited to set quota consumption according to their duties.

We should ban all kinds of consumption cards such as physiotherapy, health care, sports fitness and clubs, club members, golf and so on.

It is strictly forbidden to use public funds to pay various expenses of entertainment activities, banquets, gifts, training and other expenses that should be borne by the person in charge other than those performed by the person in charge of the enterprise, and resolutely put an end to all kinds of consumption behaviors that are not related to the management of the enterprise.

Interpretation: at the meeting of the Political Bureau of the Central Committee of the CPC yesterday, the two documents on the reform of the remuneration system of the central management enterprise leaders and the opinions on reasonably determining and strictly regulating the duties and business expenses of the directors of central enterprises were considered and approved.

Experts point out that this means a new stage in the management of salary and job treatment for the head of the central enterprise.

"No matter for the central enterprises' remuneration or the state owned enterprise reform, they all send a very positive signal."

Li Jin, principal researcher of the China Enterprise Research Institute, said that the meeting was clear that the reform of the salary system of the central enterprise leaders is an important part of the central enterprises' establishment of the modern enterprise system and the deepening of the reform of the income distribution system. The purpose is to promote the sustained and healthy development of enterprises and form a rational and orderly pattern of income distribution, reversing the previous claim that "the central enterprises' salary adjustment is a punitive means".

For the unreasonable high and excessive income, the meeting once again mentioned that the adjustment will be made, but at the same time, it also proposed for the first time that the reform should adhere to the direction of perfecting the modern enterprise system by the state-owned enterprises, improve the incentive and restraint mechanisms for the salary distribution of the central management enterprises, and clearly adhere to the classified and hierarchical management, establish a differentiated salary distribution method that is compatible with the way of selecting and appointing the directors of the central enterprises and adapt to the functional nature of the enterprises, and strictly regulate the remuneration distribution of the directors of the central management enterprises.

In Li Jin's view, this shows that the reform of the central level salary system for central enterprises has been quite clear. "It is clear that we should implement differentiation and avoid the phenomenon of" big pot ".

Zhang Zhanbin, director of the Economics Department of National School of Administration, noted that concerns about the previous "central enterprises executives' pay cuts and whether employees would also follow suit" were also mentioned explicitly.

According to the information from the conference, we must adhere to the overall consideration and form a reasonable wage income distribution relationship between the central management enterprise leaders and the employees of the enterprises, rationally adjust the pay gap between the heads of different industries, and promote social equity and justice.

"This will help eliminate social doubts and adjust salaries to a reasonable level."

Zhang Zhanbin said.

In addition, the adoption of the "reasonable determination and strict regulation of the central enterprise leaders"

"Opinions on business expenditures", the first official responsible for the central enterprises, official vehicles, office space,

The upper limit of the 7 contents of business entertainment, domestic travel, temporary travel abroad (border) and communication.

It also set a clear prohibition on "physical education and health care, sports fitness and clubs, club members, golf and other consumer cards" that enterprises use public funds to handle.

In the opinion of experts such as Li Jin and Zhang Zhanbin, the "seven contents" and "four prohibitions" are in place. From the actual demand level of enterprises, the specific items are written according to the standards. On the one hand, the normal business operation expenses of enterprises are legalized and standardized. Meanwhile, illegal practices such as consumption cards and other illegal practices of public funds are expressly prohibited. They are very detailed and in place, reflecting the characteristics of legalization and institutionalization, which are conducive to social supervision and help to better carry out their work.

About this reform, Li Jin said that there were two "unexpected thoughts": first, the speed was fast; "from August 18th to 29, the relevant documents were revised and perfected and approved" in a short period of 11 days; two, the contents of the documents were in close agreement with public opinion and public opinion. Before this, the remuneration of the central enterprises directors was widely discussed, and opinions were expressed in the various circles.