Do not become a state-owned enterprises pay cuts soothe public opinion show

 Do not become a state-owned enterprises pay cuts soothe public opinion show
2009-2-2 Beijing News
financial crisis on the real economy has no need of, and now need to explore how the enterprise with minimal cost through the economy tightening cycle.
Shanghai nine state-owned enterprises made a choice. It is reported that SAIC, Electric Group, Brilliance Group, Jinjiang International, Orient International Group, the International Port Group, SVA Group, Textile Group, the aluminum on the copper 9 Shanghai state-owned company executives will take the lead of large companies pay, and reduce travel expenses, conference fees, expenses. The number of state-owned high-level pay cut of 15% -20% in the maximum decrease of 40%.
This is economic contraction of the spread of the next wave of global pay cut. have been restricted banking executives in six countries prepared to pay, China Eastern, the aluminum and other central enterprises and private enterprises in Sany Heavy Industry executives have launched a pay cut initiatives.
pay cut and their conscious executives said state-owned enterprises, as it is administrative, market and public opinion under the pressure of the product of the triple.
root cause of wage cuts is to reduce business costs through the winter. reduce the cost of no more than reduce administrative costs, reduce labor costs, including layoffs and pay cuts and other measures, the introduction of the 9 companies the winter programs, including reducing management costs and a pay cut two measures. SOE social responsibility, restrictions on layoffs, pay cuts to become the first choice, only then can receive reduce the social costs and business costs of double effect.
pay cut reason for being concerned about the state-owned enterprises, state-owned enterprises is another important reason is that executive pay in recent years, breaking up the bottom line, the monopoly state-owned enterprises is extremely high income employees, a number of general staff and executives of state-owned enterprises difference between the pay of up to several hundred times and so often criticized by society mm Indeed, it has the efficiency of state-owned executive pay as a state-owned enterprises, social equity, the main demonstration site, all related to this news can be gathered community of the eye. < br> second half of last year, profits of state-owned enterprises, including state-owned enterprises, including the continued decline in China's industrial added value in 2008, profits of industrial enterprises reached a new low, state-owned and state holding enterprises (excluding state-owned financial enterprises) and tax revenue growth for five consecutive month decline, a profit of negative growth for five consecutive months, a number of state-owned enterprises have to accept a capital injection. in such a cold background, if the state-owned enterprises continue to receive high salaries, will face administrative superiors and the public opinion of the double attack, active pay cut is knowledge retention when the next move of the space.
not only the central enterprises under SASAC, financial institutions, the same executive compensation be restricted. Ministry of Finance recently issued a notice requiring that States and state-controlled financial institutions in accordance with the relevant provisions to suspend the implementation of equity incentive and Employee Stock Ownership Plan. CBRC has commercial bank .
SOE executives can bring temporary pay cut of course, the psychological satisfaction, the public is probably more concerned with the following two points. First, executive compensation is closely linked to performance, is to bring the right incentives, this directly determines the performance and efficiency of state-owned enterprises. If executive pay cut surface, secretly in order to increase the options, deferred compensation or the way in the future raise, pay cut to become a so-called comfort public opinion show, not meaningful; second state-owned enterprises and the market can pay cut counterparts, state-owned enterprises out of executive employment mechanism is bound to state-owned enterprises can get rid of senior executives as an Official Business, and become able to accept the market test of professional managers. pay cut is important, More importantly, efficiency.
profit decline is shameful to receive high salaries, lower salaries if they do not market-oriented employment system, the pay level is only short-term redistribution of national wealth only, of little value.