Former Gome head Chen paid 12.5m yuan
Chen Xiao, who resigned as chairman of Gome Electrical Appliances Holding last month, was awarded 12.5 million yuan (HK$14.8 million) in pay, bonus and share option last year, more than his earnings in previous years.
His pay was even higher than that given to Gome founder and former chairman, Wong Kwong-yu, before he was detained in November 2008.
Wong raged a months-long battle against Chen for control of the country's second-largest home appliances retailer last year. He blamed Chen for the company's slower expansion against its largest rival Suning Appliance, while Chen said Gome was focusing more on the healthy growth of single shops.
A shareholders' meeting in September last year voted down Wong's proposal to oust Chen.
However, Chen resigned just six months later and has been replaced by former Dazhong Appliance chairman Zhang Dazhong, in what is believed to be part of an understanding between Wong and the management.
Chen, according to Gome's annual report released yesterday, received 5.4 million yuan in salary, allowances and bonuses in his last year in the company. He also received seven million yuan in share options and 28,000 yuan for a pension scheme.
He joined Gome as the chief executive at the end of 2006. His annual remuneration climbed from 1.3 million yuan in 2007 to 1.77 million yuan in 2008 even as the company's net profit dropped 6 per cent to 1.04 billion yuan in these two years. Wong, then the chairman, was paid 1.5 million yuan and 2.1 million yuan during that time.
In November 2008, Wong was arrested and later sentenced to 14 years in jail for bribery and insider trading. Named as acting chairman, Chen implemented a share-option incentive scheme at the management level.
In 2009, the company posted a 34 per cent rise in net profit to 1.4 billion yuan and Chen's pay jumped to 6.68 million yuan, including 4.4 million yuan in share options.
Last year, Gome net profit grew to 1.96 billion yuan. Chen's pay climbed to 12 million yuan, far more than Suning head Zhang Jindong.
Despite Sining's net profit of four billion yuan last year - more than double Gome's - Zhang received just 1.8 million yuan in salary, bonuses and other benefits.