Six top bosses of major state-owned enterprises (SOEs) could
have their pay cut because their firms have failed to meet
performance targets.
The step, the first of its kind, was announced Wednesday by the
State-owned
Assets Supervision and Administration Commission (SASAC) which
acts on behalf of the state as the owner of and investor in state
assets of SOEs.
SASAC is coming good on its earlier pledge to either award or
punish SOE chiefs for their performance, Li Shousheng, director of
the commission's performance evaluation bureau, said on
Tuesday.
Performance-related contracts were signed by chief executives of
180 SOEs, holding them directly responsible for the firms'
performance.
Such contracts were a pioneering move for SASAC and part of
central government's efforts to improve the efficiency of SOEs and
make those running them more accountable.
According to their interim results, six SOEs are unlikely to
reach their targets, Li revealed whilst on an inspection tour in
the nation's northeastern provinces.
(China Daily October 21, 2004)