‘Rookie executives’ in a SOE trigger discussion
The new appointment of “rookie executives” in a major State-owned enterprise (SOE) in Xi’an, capital of Northwest China’s Shaanxi Province, has raised concern and related departments should carry out investigations into the matter soon, said an expert.
The comment came after Xi’an High-tech Holdings, a company with total assets of 127.04 billion yuan ($875.23 billion), had announced that it appointed a 34-year-old chairman, and two board members of 23-year-old and 21-year-old, according to news reports.
“People at such a young age and with such little achievement unmatched to the appointed high-ranking positions in a SOE can truly been called ‘rookie executives’,” Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Sunday.
The Xi’an High-tech Industries Development Zone financial bureau on Saturday said that no social relationships affecting the normal operations of the company were found, responding to doubts about the company’s new executives appointment.
“It’s easy for the public to tell whether the knowledge level and work experience of these people are qualified for the positions,” Mei said. “It’s not a private company that a father can pass to his children, it’s a 100 percent SOE.”
“Related departments should start an investigation soon, and give the public answers,” added Mei.
Wang Yong, a professor at the Civil and Commercial Law School of China University of Political Science and Law, told the Beijing News that if the appointment of the three people is in compliance with the requirements of the company’s law and regulations as well as the procedures of the company, then it is legal.
“But for SOEs, especially those with large assets, there are strict procedures for the selection of executives such as the chairman and directors,” Wang said.
The appointment of SOEs’ executives, especially those with assets of a certain amount, needs to be reported to the State-owned Assets Supervision and Administration Commission and relevant regulators, Wang said.