Executives' incomes must be transparent
The true incomes of senior executives of State-owned enterprises (SOEs) have long been a controversial issue. And the lack of transparency has been fuelling this controversy, says an article in Securities Times. Excerpts:
The annual incomes of SOE executives have long been a mystery. Recently, a State Asset Regulatory Commission (SARC) official said the average income of an SOE executive was 600,000 yuan ($87,877). But that hardly lifted the veil of secrecy. Their true incomes remain a mystery. And people are still guessing how much money they actually make.
The executives' incomes should not be hidden from the public. In fact, people have the right to know because it is they who fund the SOEs.
Since the SARC is responsible for issuing such information, it should not stop at just the average figure. The general public deserves to get detailed information on the level of every senior executive's pay.
The controversy has been created because of the lack of transparency. Too many experts are expressing too many opinions on SOE executives' incomes, making it hard for the public to know the truth.
So the SARC should clear the air by giving the public direct and detailed information.
Besides, there is a difference between nominal salary and actual income of an executive.
Last year, it was reported that a senior executive had an annual income of millions of yuan. But the SOE said that was only his nominal income.
Unreasonably high pays should not be covered by vague concepts. The public needs to know the truth. And keeping it in the dark will only give rise to suspicion and chaos.
(China Daily 01/13/2010 page9)
