Govt needs to curb SOE executive pay

In recent years, controversy has surrounded the exorbitant salaries of senior executives at State-owned enterprises (SOE).

Senior executives at listed SOEs earned an average salary of 770,300 yuan ($125,290) in 2013. Topping the list was Mai Boliang, CEO of China International Marine Containers (Group) Ltd (CIMC), who earned 8.69 million yuan last year.

CIMC's market value of tradable shares is nearly 40 billion yuan. In 2008, its net profit collapsed in the wake of the global financial crisis. Two years later, its container transport business recovered, along with revenue and net profit growth. CIMC executives patted themselves on the back and gave themselves a raise. Mai, for instance, earned 5.96 million yuan in 2010, 10 times his salary for the previous year. Over the next few years, CIMC's profits fluctuated, but Mai's salary stayed the same.

Senior SOE executives should concentrate on creating profits, rather than focusing on their own pay and benefits, as their salaries are ultimately paid by the citizenry.