China to cut state-owned company executives' salaries

The salaries of highly paid executives of major state-owned enterprises (SOEs) in China will be cut down, President Xi Jinping said here Monday.

Xi made the remarks at a meeting here. The meeting reviewed a plan for the reform of the payment system for executives of major SOEs directly controlled by the central government, Xinhua reported.

The president said the SOEs must make sure their salary level is proper, their salary structure is reasonable, and their salary management is strict and efficiently supervised.

"Unreasonably high and excessive incomes must be regulated," the president said.

He urged SOE executives to realise their responsibilities, accept and support the reform.

Linking the reform with the Party's campaign against extravagance, Xi stressed that apart from necessary expenses allowed by the financial and fiscal regulations, executives of the state-run enterprises will enjoy no other perks in the name of "entitled consumption."