Big Chinese firms squeeze payroll of top executives

Big Chinese firms squeeze payroll of top executives China National News Sunday 1st February, 2009 (IANS) Beijing, Feb 1 (Xinhua) More Chinese firms are slashing executive pay and having tighter budgets to get through the economic crisis, the State-owned Assets Supervision and Administration Commission of Shanghai has said. Nine state-owned enterprises in Shanghai, including Shanghai Automotive Industry Corporation (SAIC), have pledged to cut the payrolls of top executives. Some enterprises plan to cut executive pay by 15 to 20 percent, or by 40 percent at most, according to the commission. Shanghai Electric planned to cut down administration expenditure by 10 percent this year. Shanghai Bailian Group said it would cancel more business trips abroad and ask employees to switch from air travel to trains on domestic travels whenever possible. Such announcements are frequent among big Chinese firms due to the economic downturn. Aluminium Corp of China, the country's largest aluminium producer, has said it would slash payrolls of senior managers by up to 50 percent. To avoid cutting staff, it planned to scale down workers' wages down by 15 percent. Lenovo Group, China's leading computer maker, said last month it would chop the payrolls of top executive by 30 to 50 percent. Wuhan Iron and Steel Group followed suit to cut salaries of senior managers by 50 percent. Top executives of China Eastern Airlines, one of three major carriers in the nation, will receive 10 to 30 percent less monthly income starting Sunday. These moves are welcomed by the public as they are considered better alternatives to layoffs and would narrow the income gap between top executives and the general staff. Yuan Gangming, a researcher with the Centre for China in the World Economy at Tsinghua University, said slashing executive pay is a common practice for Western firms in difficult times. 'Such a practice can reduce costs, and is also important to keep valuable human resource for the future development of companies,' he said. Yuan also urged Chinese enterprises to improve pay scales and employee motivation mechanisms. _________________________________________________ . As Chairman and founder of a mid-sized chinese factory.I have cut my salary to zero and will offset any negative cash flow with my personal monies.I will always remember how the chinese people helped me when I had nothing but a good idea and a promise of a good future for those who have stood by me for these past 21 years.I will keep our doors open at all costs.Even if it means starting all over from the begining.The economic crises will not last forever.China is still the best place for me.I won’t run away from my responsibilities,it is my job to take care of those responsible for any success I have had.Anything I have accomplished was truly because of the loyality of my workers.How could any sane person turn there back on his people.We suceeded before and we will just have to do it again.To be humble is to be rich.All of these troubles has humbled me ,so I may very well be one of the richest people in the world.Michael Kraft founder/Chairman Phoenix Art Company PHOENIX ART COMPANY(HK) LTD (external - login to view) PHOENIX ART COMPANY(HK) LTD (external - login to view) By Anonymous, 02-01-09, 07:06 AM A heart warming message Mr. Kraft, I just hope we have more people like you in this troubling world. By fish, 02-01-09, 01:20 PM money in the ism-s This is the good side of communism - its spirit put into action. Sharing the unnecessary pain so everyone can stay afloat is the way to go - against the backdrop of Wall Street executives getting hefty bonuses with the bailout money. What are bonuses for? Getting bonuses from taxpayers for jobs poorly done is showing the ugly side of capitalism usurping well intended but ill managed socialism. It is heartless in that Wall Street jungle. __________________________________________________ __________________________________________________ _________________________________
Last edited by china; Feb 1st, 2009 at 08:40 PM..
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