Top SOEs' executives take millions: research

Some top executives of China's State-owned enterprises (SOEs) earn millions of yuan in annual salaries while enjoying administrative privileges as government officials, reflecting a sharp income discrepancy in the country, China Business Journal reported on Sunday.

According to a recently concluded research conducted by the Ministry of Human Resources and Social Security (MHRSS) across 10 provinces, executives working in SOEs supervised by the central government, especially in State-controlled financial institutions, were found more likely to receive high salaries.

The result of the research will be compiled and submitted to top authorities as a reference for future policy-making.

Relevant authorities are planning to take measures to control the salaries of SOEs executives in an effort to close the income gap among personnel of SOEs and the gap between SOE executives and the government officials, the journal quoted two anonymous sources from the MHRSS as saying.

The State-owned Assets Supervision and Administration Commission (SASAC) stipulated that the average yearly salary of a SOE executive is 700,000 yuan ($114,900), according to the China Business Journal.

"China's ministers receive an average salary between 100,000 yuan and 200,000 yuan. The income gap between SOE executives and officials is huge," said an anonymous source who had earlier participated in discussions between the MHRSS and the SASAC.

According to news portal chinanews.com, the total amount in salaries to top three executives of the Agricultural Bank of China was 2.77 million yuan in 2012 and 2.94 million yuan for those at the Industrial and Commercial Bank of China. Both banks are State-owned commercial banks.

Top SOE executives can also be transferred to other government posts. Jiang Jiemin, a former top executive at the China National Petroleum Corporation, also served as deputy governor of Qinghai province between 2000 and 2004.

"These top executives of SOEs enjoy multiple identities including being government officials. They also enjoy administrative ranks just like civil servants, which ensures them extra benefits and social security in areas such as pension funds," said an industry expert who requested not to be named. "This is unfair."