Performance pay for SOE bosses

The body regulating China's state owned enterprises said it had signed contracts with managers of 30 of the biggest SOEs, more closely linking salaries and bonuses to the profitability of their enterprises. The scheme is designed to boost the performance of Chinese SOEs and the added value the managements bring to state-held assets, the State-owned Assets Supervision and Administration Commission (SASAC) said. The 30 enterprises cover a wide range of industries, including China National Offshore Oil Corp, State Development & Investment Corp and China National Cereals, Oil & Foodstuffs Corp. "In line with the contract, the total profit of those enterprises in 2005 is expected to hit 82.4 billion yuan (US$9.9 billion), an increase of 75.6% compared with the performance goal of 2004," a SASAC official told state media.