China to Cut ‘Overly High’ Income of State-Owned Firm ExecutivesBloomberg News
Chinese President Xi Jinping plans to regulate income distribution in state-owned companies, cutting the top salaries, as part of the nation’s anti-extravagance and anti-corruption campaigns.
“Unreasonably high income will be adjusted,” and top managers can’t have excessive spending beyond what’s stipulated by government regulations or companies’ financial policies, according to a statement posted on the central government’s website, citing Xi. Leaders of central-government-controlled enterprises should actively support the changes, Xi was cited as saying in a meeting of the Communist Party’s reform group yesterday.
Xi started a broad campaign to cut corruption and excessive spending by government officials after he took over as head of the ruling Communist Party in November 2012. In the wake of the campaign, growth in retail sales dropped to a three-year low in April.
Yesterday’s meeting also discussed plans to build a few influential media groups, and changes to the national examination and enrollment systems.
In another meeting yesterday, Xi urged innovation to promote development, according to a statement posted on the central government’s website.
— With assistance by Helen Sun