China to cut SOE executives' salaries

BEIJING - The top leadership of the Communist Party of China (CPC) decided on Friday to cut salaries for executives of state-own enterprises (SOEs).

During a meeting presided over by Chinese President and CPC General Secretary Xi Jinping, the Political Bureau of the CPC Central Committee approved plans to reform the system that determines centrally administered SOE executives' salaries and the size of their expense accounts and other privileges.

In a statement released after the meeting, the Political Bureau said excessive salaries will be cut to reasonable levels.

It urged SOEs to improve their corporate ethics, saying that income gaps between executives and other employees, and salaries among different industries should be maintained at an appropriate level.

The plans call for ceilings to be set on SOE executives' expense accounts and for prohibitions to be placed on their official vehicles, offices, training, business receptions, domestic and overseas business trips and communications.

They strictly prohibit any spending of public funds for personal purposes, vowing to stop misuse of such funds for club memberships, healthcare, entertainment and anything else irrelevant to executives' duties and SOEs' operations.

The Political Bureau urged local-run SOEs to follow suit.

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