Big-salaried SOE executives may be asked to explain pay

State-owned enterprises (SOEs) in Sichuan Province are conducting a self-inspection on income disparity as part of a provincial campaign aimed at improving income distribution.

The Chengdu Business Daily reported that the inspection, which will last until the end of March, will mainly focus on SOEs where average salary levels are higher and growing faster than other sectors, particularly in monopolized industries such as finance, petrochemicals, tobacco and civil aviation.

According to the provincial bureau of statistics, in 2011 employees in the financial sector, both State and privately-owned alike, topped all others with an annual average income of 65,873 yuan ($10,566), while service sector employees earned the least at 21,118 yuan.

"The high income of employees working for SOEs and other monopolized sectors is due to a lack of an effective mechanism to regulate income distribution," Chen Jiandong, an associate professor with the Chengdu-based Southwestern University of Finance and Economics, told the Global Times.

The daily reported that executives in some SOEs will be investigated if they are found to have violated regulations governing income. They will be even asked to return their excess income.

"The inspection shows the determination to improve the income distribution system, but it is unlikely to change the current situation," Chen said.

Finance minister Xie Xuren said in December that the country will increase its control over high earnings in monopolized sectors in 2013.