Central Enterprises Executives Will Drop 30% And The Gap Between Workers And Staff Will Be Significantly Reduced.

The reform of state-owned enterprises' salary system has already started. A few days ago, Zhang Yi, director of the SASAC, said at a conference that the focus of the pay reform is members of the central and SASAC management teams. Ji Xiaonan, chairman of the board of supervisors of the state-owned key large enterprises of the SASAC and Su Hainan, vice president of the China Labor Association, also confirmed to reporters that the reform plan of the remuneration system for the central management enterprise heads has been deliberated and adopted and will be formally implemented in January 1, 2015.

"After the reform, the salaries of most of the central enterprises' supervisors will be reduced, which will drop by about 30% in general, especially those of the monopolized central enterprises," he said. In December 16th, an anonymous person who was involved in the pay reform scheme revealed to our reporter.

　　 income disparity bring up

The reform of the salary system of the state-owned enterprises is a part of the top-level design of the state-owned enterprise reform. The Central Committee set up the leading group of the State Council to deepen the reform of the salary system of the state-owned enterprises, and vice premier Ma Kai served as the group leader.

"Although the pay reform plan has not yet been formally promulgated, the relevant reforms have been launched, and this time, we will put forward a clearer index limit on the pay gap." In December 16th, an anonymous person who was involved in the scheme was told to our reporter.

Public information shows that the SASAC issued in 2004 the Interim Measures for salary management of central enterprises' officers did not involve the pay gap between executives and employees of central enterprises. The Ministry of Finance issued the "salary management measures for heads of state owned and state holding enterprises in finance" in 2009, which only put forward "reasonably controlling the remuneration of heads of institutions at all levels, avoiding further widening the gap between the average income level of the society and the income level of employees in the enterprises."

And clearly put forward "regulating the gap between the head of the enterprise and the staff and workers" is the "guidance on further standardizing the salary management of the central enterprises" issued by the Ministry of human security in 2009, which stipulates that the basic annual salary of the principal persons in charge is linked to the average wage of the central enterprises in the previous year.

"This is the established main responsibility of the central enterprises, the salary level will not exceed 12 times the average wage of the central enterprises." The above anonymous person said, "but in reality, the salaries of some central enterprises are far more than 12 times the average wage of the employees."

In addition, compared with the income of urban employees, the annual salary of the central enterprises is also significantly higher. "The annual average salary level of the civil servants at the Deputy ministerial level is roughly about one hundred thousand yuan, while the annual salary level of some central enterprises executives is about 1000000 yuan. The latter is more than 10 times the former, and the income gap between them is large. " Liu Xuemin, director of the labor and wage Research Institute of the Ministry of human resources, said.

　　 Salary reform start-up

The reporter interviewed learned that in the new round of reform, the salary of the central enterprises will be composed of two parts: the basic annual salary and the annual performance salary. The adjustment will be made up of three parts: the basic annual salary, the performance annual salary and the term incentive income. According to people familiar with the matter, salary reform will increase the base salary and salary constraint.

"The basic annual salary is determined by a certain multiple of the average wage of the central enterprises in the previous year. The annual salary of performance is related to the results of the annual assessment of the central people in charge. According to the different times of the annual assessment results, combined with the performance annual salary adjustment coefficient, the term incentive income is related to the assessment results of the central people in charge of the term of office, and is determined according to the different grades of the evaluation results of the term." Qiu Xiaoping, deputy director of the Ministry of human resources, said.

Qiu Xiaoping did not disclose the specific multiplier, but according to a number of central enterprises, the annual salary of the central enterprises will be determined by 2 times the average salary of the central enterprises in the previous year. The annual salary of performance will not exceed 2 times the annual salary of the central enterprises, and the annual salary will not exceed 30% of the total annual salary of the central enterprises in the term of office.

The above no celebrities claim that the salary level of the main executives of the central enterprises will not exceed 7 to 8 times the average salary of the central enterprises, and the salary gap between the leaders and the employees will be significantly reduced.

The major task of the Ministry of personnel protection, determined by the labor and social security Scientific Research Institute, is to deepen the research on some major issues concerning the reform of the wage distribution system in China. It is said that the current reasonable proportion of the average wage of the executives and the social average of listed companies can be set to 15 times, and should be reduced to about 12 times in the future. The average salary of state-owned enterprise executives should be lower than that of social average wage, which should not exceed 12 times at present, and should be reduced to less than 10 times in 2020.

Su Hainan believes that the salary reform plan stipulates that the basic salary of the central enterprises should be set at a certain multiple of the average wage of the employees in the central enterprises, which reflects the intention of balancing the salary relationship in related aspects.

However, a SASAC official who did not want to be named told the newspaper reporters that the pay would not be "one size fits all". It would determine the executive pay standard according to the industry of the enterprise, and the salary reform should be classified, graded, stratified, and orderly.

"The direction of reform is correct, and specific implementation will involve the establishment of relevant mechanisms. In this market oriented channel, there must be a set of mechanisms." Zhu Yikun, Dean of Law School of Jinan University, said in an interview with the China Times reporter.

In Zhu Yikun's view, the decision of the central enterprises in charge of remuneration should go through the corresponding due process. If the relevant procedures are passed, executives will pay their own salaries. He suggested that we should advance the supporting mechanism and system construction so as to realize the marketization of executive compensation in a real sense.

　　 Brewing big Pay cut

The relevant person in charge of the Ministry of human resources said that compared with the current policy, the salary level of most of the directors of the central management enterprises will be reduced after the reform, and some of them will still be relatively large.

"It is certain that reducing wages is the general trend. In accordance with this reform plan, the salaries of central enterprises' heads will generally drop by about 30%, and the salaries of some financial central enterprises will drop more." The anonymous person disclosed to our reporter.

Earlier in the industrial and Commercial Bank of China's interim performance conference, ICBC president Yi met with the media, said that if the state asked for a pay cut, it must be actively implemented.

In addition to financial central enterprises, other central enterprises responsible for monopoly industries will also substantially reduce salaries. Although China's industry pay gap widening, though there are objective factors, the national development and Reform Commission's Macroeconomic Research Institute found that about 1/3 of the wage gap between industries is caused by monopoly factors.

A person who is involved in the pay reform scheme proposes that when calculating the remuneration of the central enterprises, the monopoly factor should be removed or weighted so that it will not be unfair.

"If we take the real market way according to the performance theory, we should reduce the profits created by the monopolistic position of the monopolistic central enterprises in the assessment of senior executives. But at present, the senior executives of central enterprises get high salaries and high prizes for "heaven help" and enjoy a feast of policy dividends. Zhu Yikun said.

In view of the fact that there are great differences between welfare programs and treatment levels of different central enterprises, the reform plan clearly points out that the responsible persons of central enterprises should take part in basic old-age insurance and basic medical insurance according to the relevant regulations of the state, and establish supplementary endowment insurance, supplementary medical insurance and housing provident fund.

Reporters also learned that, according to the relevant spirit, the central management enterprise responsible person will not be allowed to receive any other welfare money income other than the state regulations. This also means that even if central enterprises are responsible for part-time jobs in subordinate enterprises, they will not receive remuneration.

In addition, the central enterprises strictly prohibit the establishment of consumption quota according to their duties, nor can they use public funds to pay the expenses beyond their duties, nor can they transfer personal expenses for them.

"The executive officer appointed by the central enterprises is comparable to the same level of civil servants with officials and quasi officials. He believes that the basic pay part of the calculation method can be referred to the civil service wage standards and through the multiple difference between executives and ordinary employees, reasonable determination, limit height. Su Hainan said.

According to the introduction, according to the reform plan, the person in charge of the central enterprises whose annual or term assessment is not qualified will not receive performance annual salary and tenure incentive income. This means that if the central enterprises head is not doing well, the remuneration paid or will be withheld.