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China bosses told to cut salaries

by Red Brick | 3 years, 1 month(s) ago

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Tags: Bosses, China, cut, Salaries, told

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Guest1304264

a very good step indeed. i always think that there is an unequal distribution of money. the rich are getting more rich and the poor are getting more poor. and this applies everywhere...not just in china...
Report (0) (0) | 3 years, 1 month(s) ago
zarnigar

Executives of state-owned banks and insurers in China have been told to cut their salaries to ease the disparity between themselves and Chinese workers. A government directive reported by the official China Daily newspaper, said that individual financial enterprises paid top executives too much. The ruling came amid growing concern about the economic downturn. Executive pay in China is modest by Western standards, but is many times that of ordinary workers. It is estimated that the global economic crisis has thrown at least 20m people in China out of work. The directive follows rising public grumbling about huge pay packages for top executives at state-owned financial companies, the China Daily reported. 'Too much' Total executive pay for 2008 at financial institutions - which many are still calculating - must not surpass 90% of the 2007 levels, the Ministry of Finance said. Companies whose profits declined last year should slash another 10%, with deeper cuts at those in financial trouble, it said. "Individual financial enterprises pay top executives too much. The gap between them and average workers and internal staff is clearly expanding," the ministry said. It said pay cuts were needed to "further equalise distribution of income". Most of China's major banks, insurers, stock brokerages and other financial institutions are government-owned. But many have listed Hong Kong subsidiaries and it was unclear how executives linked to those entities might be affected. The country's economy has been forecast to grow by 8% this year but the collapse in global demand for exports is hurting Chinese workers.
Report (0) (0) | 3 years, 1 month(s) ago