SOE manager base salaries fixed through ’09

Base salaries for senior managers at state-owned enterprises (SOEs) will remain unchanged until at least the end of 2009, State-owned Assets Supervision and Administration Commission (SASAC) director Li Rongrong told the China Securities Journal. Performance-related bonuses will remain in place. Li added that total remuneration, including bonuses, for senior managers grew from US$51,037 (RMB350,000) in 2004 to US$69,703 (RMB478,000) in 2007, or an average 14.9% annual gain, adding US$6.71 million (RMB46 million) to SASAC’s payroll for senior managers. Of the US$51,037 (RMB350,000) average annual compensation in 2005, US$21,873 (RMB150,000) was base salary and the remaining US$29,200 (RMB200,000) related to performance. Profits at SASAC-administered SOEs grew an average 36.7% per annum over the same period from US$71.1 billion (RMB488 billion) in 2004 to US$112.06 billion (RMB768.5 billion) in 2006. Remuneration and profit figures for 2007 were not reported.