China Orders Pay Cuts for Bosses
Top Chinese executives have been told to cut their salaries. From BBC:
Executives of state-owned banks and insurers in China have been told to cut their salaries to ease the disparity between themselves and Chinese workers.
A government directive said that individual financial enterprises paid top executives too much.
The ruling came amid growing concern about the economic downturn, which has put some 20 million people out of work.
Executive pay in China is modest by Western standards, but is many times that of ordinary workers.
New salaries are not to exceed 90% of their amount from last year. From AFP:
Last year’s pre-tax income for top executives, including salaries, bonuses and benefits, must not exceed 90 percent of their earnings in 2007, the Ministry of Finance said in a statement on its website late Thursday.
It added the cap would be 80 percent for executives at financial companies whose operating profits fell last year.