Reasonable paychecks

The pledge by top executives of nine State-owned enterprises (SOE) in Shanghai to cut their salaries and spending this year is a reassuring move. It will not only help unite employees and boost their confidence in fighting the current economic woes, but will also encourage writing reasonable paychecks for company chiefs.

The pay slash, by 15 to 40 percent, for top executives from SOEs such as Shanghai Automotive Industrial Corp, Shanghai Jinjiang International and Shanghai Brilliance, shows the determination of these CEOs in joining ordinary workers to bear the brunt of the economic hardship. It is a big contrast to the mid-1990s when millions of SOE workers were laid off during the city's industrial restructuring, while most bosses not only did not suffer, but instead were settled to higher paying jobs.

In announcing a cut in pay and other spending on the expense account, the company chiefs have set a role model for the nation's tens of thousands of SOE heads. The message is that they should not take their privileges - fat salaries, bonus programs and other benefits - for granted when the country, their companies and workers are facing tough challenges.