With the introduction of the “restricted wage†of financial institutions’ senior executives, it will be logical to call for high-level pay for state-owned companies. A few days ago, it was reported that the regulations governing the remuneration of persons in charge of state-owned enterprises led by the Ministry of Human Resources and Social Security (Ministry of Human Resources and Social Security) will be finalized and are currently undergoing further revision, improvement, and reporting. After it is submitted to the State Council for validation, it is expected to be promulgated in the near future. The reporter learned that the "Limited wages order" issued by the top financial institutions of the Ministry of Finance is an important part of the Measures for the Administration of the Remuneration of the Responsible Persons in State-owned Enterprises.
The issue of remuneration for senior executives of SOEs involves a wide range of issues and needs to coordinate the interests of different regions, industries, and departments. How to solve these problems and how relevant regulations have operability are all concerned.
For a long time, the issue of high salaries of executives of some state-owned enterprises, especially those responsible for monopolistic state-owned enterprises, has been widely criticized by the community. The economic adjustment triggered by the financial tsunami has caused repeated job cuts and layoffs. Under such circumstances, the high pay of some SOE executives is especially garish, and the call for pay restrictions for senior SOE executives is also rising.
Chairman of CNOOC's 10 Million Annual Salary Challenged
The CNOOC annual report shows that the company’s 2008 performance has soared by 40%, and its net profit has soared by 42% compared with 31.2 billion in 2007, reaching a record high of 44.3 billion yuan. The increase in the performance of PetroChina and Sinopec fell.
However, compared with its bright annual report, the society is more concerned about the annual salary of its chairman and CEO Fu Chengyu disclosed in the annual report. According to the annual report, Fu Chengyu's remuneration (remuneration and share option income) at CNOOC reached 12.04 million yuan, an increase of 740,000 yuan over 2007. This over 10 million salary consists of five parts: the emolument (a bonus of the board members), salary allowances and benefits, performance bonuses, contributions to retirement benefits plans, and stock option returns. Compared with Fu Chengyu's annual salary of 10 million yuan, the salaries of PetroChina and Sinopec executives seem miserable: Zhou Jiping, vice chairman and president of PetroChina, received a total of 51.5 million yuan in remuneration from listed companies in 2008. Wang Tianpu, president of Sinopec, was only 84.4 last year. Ten thousand yuan.
In the sensitive period when the Ministry of Finance had just released the "restricted wages order" for senior executives of financial institutions last week, Fu Chengyu's annual salary of tens of millions of yuan naturally appeared to be particularly pleasing to the eye, drawing public opinion into doubt.
Regarding the questioning of public opinion, related persons of the CNOOC Group stated that CNOOC, as a red chip company in Hong Kong, designed the salary of senior executives in accordance with the laws and regulations of Hong Kong Stock Exchange and Hong Kong in the year of listing. According to this standard, the salary of Fu Chengyu should indeed be so much. However, only "nominal wages" have never been implemented.
The SASAC stakeholders also stated that Fu Chengyu’s remuneration was formulated by the SASAC according to his work performance. "The executives of the central enterprises cannot get a salary of 10 million yuan." The person explained that the annual salary of the central SOE executives was divided into basic salary and performance bonuses, which were assessed by the SASAC Performance Evaluation Bureau based on its annual performance. Last September, Li Rongrong, the director of the SASAC, revealed at the press conference that during the first assessment period (2004-2006), the average annual salary of central SOE heads was 350,000, 430,000, and 478,000, respectively. Li Rongrong also stated that during the period of 2007-2009, it will not increase the basic salary of the person in charge of the central SOEs, and the floating of performance bonuses will be linked to the responsibility.
All walks of life expressed great concern about the "limited pay"
On April 10, the Ministry of Finance promulgated the "Circular on the Relevant Issues concerning the Remuneration Distribution of Top Executives in State-owned Financial Institutions in 2008", and imposed pay restrictions on the senior executives of financial institutions. It is required that the salary of senior executives of state-owned financial institutions in 2008 be determined at no more than 90% of the 2007 salary.
The reporter learned that the senior executives' pay restrictions of financial institutions are only part of the "Administrative Measures on the Remuneration of the Responsible Persons of State-owned Enterprises" that are being worked out. Because the United States and the European Union had issued regulations on pay restrictions for senior executives of financial institutions in the past, the issue of the pay of executives of financial institutions has become a topic of intense concern in the society. “It is not ruled out that the management took the part of the relevant financial institutions in the “Measures for the Remuneration of the Responsible Persons of State-owned Enterprises†ahead of schedule. On the one hand, it showed the attitude of resolving the problem of salary of financial institutions. On the one hand, it also used this to test the society’s upper limit on SOEs. Remuneration of the pay. This will further improve the state-owned senior executives' pay restrictions," said a professor at the Guanghua School of Management at Peking University, who declined to be named.
Professor Yang Ruilong, Dean of the School of Economics at Renmin University of China, believes that not only financial executives are required to pay salaries, but also those senior executives of monopolistic state-owned enterprises and those of non-state-owned listed companies, if their salaries deviate from the company The business performance must be limited as necessary.
In the first half of 2008, due to the high price of over 60 million yuan in salary from Ma Mingzhe, Chairman of the Ping An Group, the social responsibility of the State Council led the Ministry of Social Affairs to take the lead in studying ways to limit the salary of senior executives of state-owned enterprises. It is understood that the overall direction of the new approach is to further strengthen the incentive and restraint mechanisms for salary allocation among national executives, clarify the relevant principles, equate the rights and responsibilities of state-owned enterprise executives, eliminate the phenomenon of discretionary compensation of state-owned enterprise managers, and end the current lack of Under the unified national regulations, the scale of executive management by senior executives in different regions, industries, and levels is different, and there are huge differences.
Wang Xiaohui, professor of the Department of Economics and Management at the Lingnan College of Sun Yat-sen University, said that the Ministry of Finance has issued a “restricted wages order†as a correct decision in light of the economic slowdown. It is also expected that the "Measures for the Administration of Responsible Persons in State-owned Enterprises" will be introduced as soon as possible. (Reporter Tian Zhiming Intern Li Jiaqi)
Comprehensive "Limited Salary" Needs to Solve Three Major Problems
Compared with financial institutions, the “Measures for the Management of the Remuneration of State-owned Enterprises Responsible Personsâ€, which involves far more extensive aspects, will face many “challengesâ€. This is also the painstaking point of the management’s introduction of the pay restrictions of senior executives of financial institutions. Professor Zhang Li from the Central University of Finance and Economics pointed out that there are three major problems that need to be solved by the “Administrative Measures on Remuneration of the Responsible Persons in State-owned Enterprisesâ€.
How is the first "state-owned enterprise" defined?
What are the SOE-controlled enterprises considered as SOEs? Subsidiaries under SOEs and SOEs are counted as SOEs? If these issues are not clearly defined, then there are many problems in actual operations.
The second meeting will not cause a conflict of laws?
Senior executives of financial institutions have just issued a pay restriction, and this limited pay order has "retroactivity." The Ministry of Finance specifically pointed out that "before the issuance of this circular, all financial institutions in various countries that have issued compensation for the 2008 senior executives in excess of the upper limit determined in accordance with the above principles should be deducted or returned in 2009 pay." If senior executives had previously signed a contract with the company and the salary in the contract exceeded the standard of the salary limit, then does this contract have any effect? ​​Some U.S. senior AIG executives refused to return the high dividend if the contract had legal effect. Finally, Congress had to solve this problem by enacting a new law to collect 90% of the tax revenue.
Will the Third Session lead to a "higher salary" tide?
The promulgation of the restraining order also created conditions for the salary increase of some SOE executives whose annual salary is not "up to standard", and it will also cause the company's middle salary to be much higher than that of senior executives. This kind of thing has just happened at Shanghai Pudong Development Bank. The Shanghai Pudong Development Bank's annual report shows that while the salary of Vice Chairman and President Fu Jianhua has dropped from 2.2 million yuan in 2007 to 1.76 million yuan in 2008, the salary of some senior executives of the bank has increased substantially year-on-year. . For example, the salary of employee supervisors Yang Shaohong and Dong Mi’s meditation was much higher than that of President Fu Jianhua, which reached 5 million yuan and 3.83 million yuan respectively, an increase of 118% and 98% year-on-year.
Jia Heting, an inspector of the Shenzhen State-owned Assets Supervision and Administration Commission, told reporters that for companies with subsidiary companies and branch companies, lower-level companies should work with their parent companies to jointly implement the “Limited Pay Orderâ€. “But the paycheck is only a temporary measure and may change once the economy recovers.â€