Competition ups executive salaries

Source:Global Times Published: 2014-4-17 20:48:01

Executive compensation at the 1,576 mainland-listed companies which had issued their 2013 annual reports as of Wednesday totaled a combined 87.66 billion yuan ($14 billion), according to local media reports. China Vanke Co Ltd, Ping An Insurance (Group) Company of China Ltd and Fangda Special Steel Technology Co Ltd offered the highest pay to their executives last year, shelling out 112 million yuan, 94.37 million yuan and 56.01 million yuan respectively.

Whether China's senior executives really deserve their high pay has always been a controversial subject. Fundamentally speaking, industry conditions and a company's business performance are the two biggest factors determining compensation at listed enterprises.

Financial and real estate companies are always the most generous with executive pay. One explanation could be that domestic banks, securities companies and insurers have to dangle high wages to attract and retain top-level talent in the face of stiff competition from their overseas counterparts. Among the companies mentioned above, 17 paid more than 10 million yuan to their senior managers; and of this group three were property developers and six were in the financial sector.

The author is Hu Xiaoying, a media personality.

Securities Daily



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