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| SOE Chiefs Could Lose Their Jobs |
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The chiefs of six central state-owned enterprises (SOEs) may lose their jobs as a result of poor management after an annual examination of the performance of central SOEs. According to a statement from the State-owned Assets Supervision and Administration Commission (SASAC) yesterday, four central SOEs received D grades and two received E grades in the 2005 examination. According to an earlier regulation on performance assessment, in addition to a cut in salary and bonuses, the chiefs of such enterprises may face dismissal or a change of job. However, none of the firms were identified. The performance evaluation system, introduced by the SASAC in 2004, check annual profits, returns on equity and other major financial figures that reflect the performance of the central SOEs and then grades the enterprises on a scale from A to E. The 2005 examination, in which 166 central SOEs participated, saw only 28 enterprises receive A grades and 84 receive Bs. Apart from their basic salary and a performance bonus worth 1.5 to 3 times their salary, their leaders will receive additional medium- and long-term incentives. Those running enterprises graded D and E could lose their jobs after their bonus is reduced, based on the condition of the enterprise. Four enterprises were downgraded because of safety or environmental pollution accidents, including China National Petroleum Corp and Sinohydro Corp. Six others, including China Guodian Corp and China Datang Corp, were downgraded as a result of irregular financial practices or negligence in supervision. (China Daily August 23, 2006) |
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