Exec salaries prop up wage inequality

Source:rednet.cn Published: 2012-10-18 22:45:07

According to a recent report from China's Ministry of Human Resources and Social Security, astronomical increases in salaries in several domestic industries, especially among high-level corporate executives, have widened the gap between the rich and the poor.

Take Ma Mingzhe, the general manager of Ping An Group, for example. In 2007, his annual income reached 66.16 million yuan ($10.58 million); 2,751 times higher than the average yearly salary of a white collar worker in China at that time and 4,553 times more than the average migrant worker.

Wealth distribution is an issue that concerns everyone in China. The government must do something to keep the incomes of top executives at financial institutions, real estate firms and monopoly industries from rising too quickly.

Steps should also be taken to emphasize structural changes which will lead to growing salaries for all of the country's workers based on the principal that the harder one works, the more they will be rewarded.

The author is Chen Yijun, an economic commentator.

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