A government unit that manages public shareholding has formulated regulations to cap monthly salaries paid to the heads of government-owned or partially government-funded financial institutions at NT$320,000 ($10,100) in light of a recent self-enrichment incident involving the head of a government-owned company.

The cap was calculated by doubling the monthly salary of NT$160,000 received by Susan Chang, chairwoman of the government-owned Taiwan Financial Holding Co, the island's largest financial services provider.

The Government Shareholding Management and Supervisory Unit under the Executive Yuan passed the regulations Wednesday after it was revealed that Taiwan Asset Management Corp (Tamco) Chairman Chen Sung-chu has enriched himself out of proportion to his worth.

Chen made NT$400,000 a month, with an additional NT$150,000 in monthly public relations fees, far more than the NT$180,000 received by "Finance Minister" Lee Sush-der, according to local media reports.

The Tamco chairman reportedly has distributed around NT$80 million of corporate profit to 59 senior executives, including NT$20 million for himself and NT$10 million for a former company president.

The new regulations will be applicable to the chairpersons and presidents of 108 government-owned or partially government-funded enterprises that are appointed or recommended for the position by the "Ministry of Finance" (MOF).

According to the regulations, those who are appointed or recommended by the MOF to serve as chairmen or presidents cannot receive a monthly salary that is more than double that of their counterparts in other government-run companies of about the same size, at the same level and in the same field.

Salary amounts in excess of that will be taken into the government coffers or recouped by the companies involved, according to the regulations.

Total variable income, such as performance rewards and other bonuses, paid to company heads should not exceed the total fixed income, such as monthly base salary and supervisory pay that they receive, according to the new regulations.

In addition, there will be a cap of NT$200,000 on total performance bonuses, according to the stipulations.

China Daily/CNA

(HK Edition 03/12/2010 page8)