The average annual pay for senior executives of State-owned enterprises (SOEs) last year hit around 600,000 yuan (US$87,840), which is "not too high", said an official from the State-owned Assets Supervision and Administration Commission (SASAC), chinanews.com.cn reported today.
Li Rongrong, director of the SASAC, the authority in charge of SOEs, said at a forum held in Peking University yesterday that the pay for SOE executives is closely related to the performance of their businesses.
He said the basis payment for senior managers of SOEs only accounts for one third of their total salary. The other two thirds will be decided according to their performance during their term, usually three years.
Statistics show the average annual pay for SOE executives was 350,000 yuan, 430,000 yuan, 478,000 yuan and 550,000 yuan from 2004 to 2007, with an annual increase of about 14 percent.
The annual income of Wang Jianzhou, chairman and CEO of China Mobile, ranked the first among SOE executives in 2007, hitting 1.3 million yuan ($190,320), Li revealed.