No cap on executive limit

Source: Internet
Author: User
Keywords CAP competitive
The Department of Insurance believes that the salary limit is not equal to a pay cut the expected July compensation standards will improve the incentive mechanism according to the central widely reported by the Ministry of Protection, SASAC and other departments to participate in the "State-level executive compensation" is expected to be introduced in July 2009, the second term of the top executives in the center (2007 ~2009 years)  In the final year, central-and-central executives will end their "custom pay" history. The ministry says the department is straining to set rules for executive pay at central-level executives to ensure that top executives ' incomes remain at reasonable levels.  The pay limit for the top executives of the central enterprises will be different from that of the senior executives of the financial institutions, and the "cap" should be unified. The Ministry of PICC in determining the overall pay level of the central enterprise executives down the premise, will not be for the central Enterprise executives ' income to set a "unified ceiling", but for each of the different enterprises, the corresponding formula calculated after the separate delineation. "How much of each central-and-central executive's pay is based on the specified remuneration formula." For example, tens of millions of dollars in the executive pay will certainly be cut, and the income is not high, not up to the average level will also improve.  "said the expert. "SASAC has done relevant research, we have been widely consulted from the second half of last year, the views of the central enterprises and the general staff have been consulted, most of them are very compatible." "the ministry said.  At present, the scope of salary limit has been basically determined-the state-funded commission to set up 138 central enterprises and their subordinate or controlling listed companies, all will implement a pay limit. "The upcoming pay code for executives at the top of the state is meant to be ' limited pay ', except in the direction of the US ' pay order '. The United States is too aggressive to the executive incentives, so only to limit pay, and China is the Central Enterprise Executive incentive measures are not in place, so that some executives want to rash, so only to regulate restrictions.  Professor Central Guo Tianyong, who has long been concerned about SOE reform, told reporters. The people in the Ministry of Insurance also agreed with Guo Tianyong's view that however, he believes that the salary limit can not be understood as a pay cut, the meaning and purpose of the "salary specification" is to fully mobilize the enthusiasm of the leaders of the central government, improve the incentive mechanism of the company, focusing on the allocation of market resources, give full play to the role of national macro-control,  Truly realize the fairness and justice of distribution according to work. However, the SASAC's distribution bureau, which has been involved in research, hears "complaining". "For example, in the general competitive field of the enterprise and monopolistic state-owned enterprises, the competitive field of the boss is obviously more difficult." And the annual salary can get tens of millions of dollars in the listed company bosses, it seems very unfair.  Bai Wan, director of the CLS Consulting Group. Not long ago, CNOOC boss Chengyu was exposed to an annual salary of up to more than 14 million yuan, daily is 40,000 yuan. In response, Chengyu has responded that since CNOOC is a Hong Kong-listed company, the remuneration is determined by the board. As for the average remuneration of the top executives, they will be donated to the parent company.
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