Expert Interpretation: Increasing Term Incentives Is A Major Trend

The performance appraisal of central enterprises is A to E five level, the performance salary of the person in charge of A-level enterprises is 2-3 times of the performance salary base; in turn, if the assessment is B, the performance salary is the 1.5-2 times of the base number; the assessment is C, which is 1-1.5 times; and the assessment is D, which is 0-1 times. When the assessment result is E, the performance salary is 0.

According to the original design, the ratio of basic annual salary to performance annual salary is 4:6, of which the annual salary is 60% in the current period, and the remaining 40% will be paid according to the overall performance of the central enterprises at the end of the term.

SASAC insiders say that the implementation of the delayed payment is to play a role of constraint, because the central enterprises only have annual salary before the establishment of the SASAC, and no long-term incentive system has been established. Starting from the third term, the SASAC has begun to introduce the term incentive income in the remuneration of central enterprises in order to replace the form of delayed payment and assessment results.

Li Jin, vice president of the China enterprise reform and Development Research Institute, said that the introduction of the term of office assessment by the central enterprises is the trend of the times, because the appointment of the central enterprises in the central part of the Central Committee is a tenure system. This system can easily lead to the blind expansion of the central enterprises in pursuit of short-term effects in the tenure of office, resulting in large losses. This is also a lesson summed up by the rapid expansion of the central enterprises in 2008 and 2009.

　　 New regulations limit high control high means obvious

　　 Li Jin Disclose, the person in charge determines the same basic principle in principle. Annual salary In fact, it also set the ceiling for the salary ceiling of the central enterprises, because the proportion of the three part of the central enterprises is clearly stipulated.

Li Jin said that the reform of the remuneration of the 72 central enterprises mainly followed the principle of "fairness is the main consideration and efficiency should be taken into account", and the salary based appraisal of senior executives is highly significant. He predicted that the biggest impact of this round of pay reform will be on financial enterprises, followed by indemnificatory enterprises and enterprises with monopolistic nature, such as oil, power grids and Telecommunications under the supervision of the SASAC.

General manager of Shanghai tianqiang Management Consulting Co., Ltd., Zhu Bo Shan, said that the head of the central enterprises appointed by the Central Committee of the Department decided the same basic annual salary in principle, reflecting the logic of the new regulations promulgated by the Ministry of human resources and social affairs.

　　 Pay How to open will become the focus

For central enterprises in the future negative