China SOE executives to face major pay cuts

A new reform plan for the payment packages of top executives at China's large state-owned enterprises has come into effect.

Executives of 72 SOEs will see their salary packages shrink this year, including China's largest oil and gas producer CNPC, Sinopec, and communications firm China Mobile.

The salary reform will also affect executive paychecks and corporate expenses of state-held enterprises.

New regulations have also formed a revised salary structure composed of basic wage, performance-related payment and incentive income.

Under the new rules, the total annual salary of SOE executives should not be more than seven to eight times of the average staff wage.

Meanwhile, SOE executives are required to disclose their salaries.

The salary reform is part of a broader reform plan in the SOE sector, which have centered on bringing in private capital to foster modern governance systems and develop a mixed-ownership economy.