Feeling the effects of the global financial crisis, a wave of salary reductions that began with high level executives in Chinese mainland's enterprises directly under the Central Government has spread to local state-owned enterprises.
An official at the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government revealed that high-level executives in Shanghai's nine large-sized SOEs, including Shanghai Automotive Industry Corporation (Group) and Shanghai Electric Group, will take the lead in pay cuts and reducing expenditures such as travel expenses and conference fees.
The official said that the salary cuts of these high-level SOE executives vary, with the largest reduction being 40 percent. Reductions in the enterprises' other wages, remuneration and benefits are around 15 percent.
In addition, to cut down costs, the nine SOEs are strictly controlling expenses including travel spending, business entertainment fees, conference fees and vehicle purchases, and will postpone renovation projects at office facilities.
By People's Daily Online