‘CHINA MULLS HIGHER EXECUTIVE COMPENSATION’
Govt seeks to retain talent needed to overhaul bloated sector, says source
BEIJING said the person, in an effort to hold onto their managers.
The discussions show the challenges facing President Xi Jinping as he pushes China’s almost US$20 trillion (RM86.8 trillion) state sector to embrace structural reform while cracking down on perceived excesses that have fuelled public anger at the Communist Party.
While the cap saw the earnings of China Construction Bank Corp chairman Wang Hongzhang halve to 600,000 yuan (RM377,580) in 2015, the salaries of some overseas executives have stayed high: JPMorgan Chase & Co’s Jamie Dimon received US$28 million last year. helping generate the strongest profit growth in years and adding to a reflationary pulse across the global manufacturing sector.
But China’s reflation cycle in producer prices had probably peaked, and would trend down further, which could drag on China’s economic growth in the second half of the year, said ANZ senior China economist Betty
The stakes are high as Xi seeks to prove his stewardship of the economy ahead of a midterm party leadership reshuffle later this year, which will determine the strength of his influence going forward.
China was set to kick off another round of state-enterprise reform, with as many as 10 companies preparing proposals to sell stakes in their units, said people with knowledge of the plans.
Still, while China quickly reined in executive pay under Xi, efforts to force consolidation and increase profitability among Wang in Hong Kong.
“The recovery momentum in the economy that emerged in the second half of last year was mainly driven by producer price inflation rather than any changes from a fundamental perspective,” said Wang.
The soft April inflation data, combined with slightly slower growth in manufacturing activity, state companies have progressed slowly.
International Monetary Fund first deputy managing director David Lipton last year recommended China establish a special to group to oversee “uneven” state-enterprise reforms.
“The depressing pace of the statesector reform process reflects a wider belief that the current SOEcompensation system is unsustainable,” said Shanghai University of Finance and Economics administration professor Zhu Weiqun. Bloomberg
The depressing pace of the state-sector reform process reflects a wider belief that the current SOE-compensation system is unsustainable.
reinforces analysts’ views that China’s economic expansion remains solid but is starting to moderate after a surprisingly strong start to the year.
The consumer price index rose 1.2 per cent last month from a year earlier, said the statistics bureau, up from a 0.9 per cent rise in March and slightly above analysts’ forecasts. Reuters