Politburo approves pay cuts for bosses at state-owned enterprises
Top body approves long-sought reforms championed by Xi Jinping
Top executives at state-owned enterprises (SOEs) will have their salaries cut and perks reduced, the central government announced yesterday.
The reforms were passed at a Politburo meeting chaired by President Xi Jinping , who has led the campaign against extravagance.
Xinhua reported that the government wanted to narrow the gap between what top executives earned and the salaries of employees lower down the ladder.
A survey by the State-owned Assets Supervision and Administration Commission showed that from 2010 to 2011, the average salary level of top executives at firms it controlled was between 650,000 and 700,000 yuan (HK$817,000 and HK$880,000).
In the banking, finance and insurance sectors, top managers could command salaries of more than 2 million yuan.
Executives at SOEs controlled by the central authorities and provincial governments will be affected by the reforms.