CHINA-ECONOMY: RATIONALISATION OF SALARIES IN SoEs
|
China's official media reported on August 29, 2014, that senior executives at mainland state banks could face pay cuts in line with recent government reforms. China Construction Bank (CCB) Executive Vice President Huang Yi, at a press conference in Hong Kong recently, said "Remuneration packages at state-owned enterprises have been an area of concern for quite some time, especially for those at the very top, including myself. I also have to face a salary cut, right?" He added "We are talking about senior management only. Other staff members won't be affected." China's official media meanwhile reported that CCB would enact a so-called 5321 plan, denoting a 50 per cent cut to executive pay, a 30 per cent cut for department heads and 20 per cent for section heads. General staff salaries would be reduced by 10 per cent. The measure called for a 30 per cent reduction in the pay of a top executive or capping it at 600,000 yuan (HK$757,000). |