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China Parliamentary Sessions 2015
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State Grid boss Liu Zhenya. He claims his salary is far lower than counterparts at foreign companies. Photo: SCMP Pictures

‘I’ve had a massive pay cut,’ says Chinese power grid boss

Head of State Grid says he is happy about the reforms as it means his staff get more cash, according to a newspaper report

China Unicom chairman Chang Xiaobing has seen his monthly take-home pay shrink by about a fifth since salary reforms for top executives at state-owned enterprises took effect.

At a panel session for the Tibet delegation to the National People's Congress yesterday, Chang said he used to earn about 10,000 yuan (HK$12,580) a month but now earned about 8,000 yuan after tax, amid greater public scrutiny of SOEs.

"We have to respond to new expectations of the market. It will be difficult for us to face challenges if we do not adjust our way of doing things," Chang said.

Liu Zhenya, president of power distributor State Grid, also said that his annual pay was several hundred thousand yuan less a year. According to , Liu said he used to make over 1.2 million yuan (HK$1.5 million) a year before tax, which was "dozens of times" less than bosses at some foreign firms.

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He added it was right that his salary was cut. "Several hundred thousand yuan is a big number for ordinary people, even huge," he was quoted as saying at the annual parliamentary sessions under way in Beijing. "With my salary cut, the State Grid's middle management and general staff get more."

Liu's comments came after China Power Investment Corporation Communist Party boss Lu Qizhou claimed that he had a monthly salary of less than 8,000 yuan a month.

Lu later explained this was only the basic part of his benefits package and his annual salary would be about 500,000 yuan a year before tax if including merit pay.

He said that before the reforms, he made over 800,000 yuan in a good year.

 

This article appeared in the South China Morning Post print edition as: Reforms at state firms cut into pay at the top
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