Central Enterprises Executives Pay Reform Should Be Directed At The Essence.

To clarify ideas, central enterprises executives are divided into two categories: market selection and organizational appointment. Continuing this framework of thinking, the reform of central enterprises pay has become simple and divided into two categories: market oriented market, non organization appointed professional managers, according to the market approach to determine their remuneration; organization of organization, appointed by the organization's top managers to become a key salary target, its pay structure will be designed as basic salary and long-term incentive two parts, of which the basic salary will be formulated according to the same administrative level civil service wage standard, at the same time abolish or reduce job allowance and performance bonus, increase medium and long-term incentive assessment.

According to "daily economic news" reported, a number of people close to the Ministry of Social Affairs confirmed that the Ministry of human resources and social affairs has completed the central enterprises executive pay reform plan, is expected to be announced in December this year, the program roughly as above. Li Zhong, spokesman of the Ministry of human resources and social affairs, said that the reform will be carried out in accordance with the requirements of classified management of enterprise leaders.

This means that the final determination of the remuneration level of the central enterprises will be different according to the functional orientation, the industry, the scale of operation, the management difficulty, the business responsibility, the business risk and the business performance of the specific person in charge.

The reform of executive pay system of central enterprises should be concise and easy to operate. It should aim at the essence of reform rather than increase the rent-seeking space of policymakers and executives.

The plan of the Ministry of human resources and social affairs disclosed above is too complicated and does not focus on improving the efficiency of reform itself.

The professional pay scoring system is very complicated. What is the functional positioning? What is the difficulty of operation? How long is it to operate? How long is the scoring time, how long does it take to fight an industry boom, or how to score every month?

The Ministry of human resources and social affairs has drawn up a list of industry and job discrepancy and scored for the top executives of the central enterprises. It is not only that the Ministry of personnel and social affairs and other departments should not intervene, but the reasons for their involvement are inadequate.

The professional managers chosen by the market should be Market pricing When the professional managers take over the business performance, the net assets yield and asset quality assessment will naturally worry about the board of directors and the Remuneration Committee, and do not bother the departments concerned. According to the performance of professional managers, the company gives short-term incentives, such as salary income, long-term incentives such as equity cashing, and so on, to gradually fulfill the remuneration of professional managers.

The central enterprise executives appointed by the organization department are not professional managers in essence, but full-time supervisors who follow the steering rudder. It is not appropriate to pay high salaries to these executives, and the best choice is to pay civil servants. France and other countries are state-owned enterprises in accordance with civil service pay. Executive pay The reason is this: since it is to provide public services, why should we refer to executive compensation?

This is right. Organization Department The appointed executives have also left a hole. Their pay structure will be designed into two parts: basic salary and medium and long term incentives. The basic salary will be formulated according to the civil servant wage standards of the same administrative level, while the abolition or reduction of job allowance and performance bonus will increase the mid long term incentive assessment. In other words, the organization department will also appoint senior executives of the central enterprises to give long-term incentives to those who are appointed. If they perform well, they will cash in the stock options.

Since the central enterprises are enterprises, we must respect the laws of the enterprises. The fewer the appointed departments are, the better. The more the market will hire, the better. Finally, the organization department will be reduced to one or two people, and the rest will be chosen by the market. There is no need to worry about control. There is a golden share system to choose from.