Nine major state-owned enterprises (SOE) in Shanghai plan to cut executive pay and reduce business travel expenses to cope with the current financial crisis and help ensure their companies' smooth development, the official Xinhuanet reported, citing sources within the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government.
The nine are Shanghai Automotive Industry Corporation, Shanghai Electric Group, Bailian Group, Jinjiang International Group, Orient International, Shanghai International Port Group, SVA Group, Shangtex Holding Corporation and Chinalco Shanghai Copper Company.
According to the report, most executives will have their pay cut by 15 to 20 percent, with the biggest cut being 40 percent.
The nine SOEs have ordered their executives to shoulder the burden of the current economic downturn along with their employees, and have stipulated that executives can only receive pay hikes after their employees, and should suffer pay cuts before employees.
The SOEs also plan to strictly control expenditure on business travel and conventions. Shanghai Electric Group put forward ten measures to cut costs, including reducing management costs by 10 percent in 2009, and bringing the ratio of sales costs to sales revenue down to 3 percent.
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(China.org.cn by Yan Pei, February 2, 2009)