10/05/2009

Salary cap for head honchos of State Owned Enterprises

China has initiated a cap on the salaries of the CEOs of their SOEs. At the moment the highest paid CEO from China National Offshore Oil Corporation, CNOOC, earns $2.5m. The next highest earns half of this amount. And the third is only paid less than $300k a year. Other perks not included. Given the scale of their operations and revenues, the salaries earned were peanuts. The head honchos should submit an appeal to compare their salaries with those CEOs of similar industries to get a fair salary. They are obviously very underpaid for the responsibilities they are shouldering. Or at least they can compare their salaries with our CEOs to give a picture of how lowly paid they are. They can quote Singapore as a role model of transparency and good corporate govt and we are paying should be fair and good. And they have been copying Singapore in many things and copying the way we pay our CEOs is only natural. And after the comparison, the CEO of CNOOC could easily be in the region of $10m or more. How could they justify to curb their CEO's salaries when they are so indecently underpaid? If they do that, they must be prepared for more corruption in high places.

9 comments:

Anonymous said...

Lost here, are you encouraging exuberant pay for the ceos or you being sarcastic that local are bloated? I like the cap as it is clearly arbitrary 1% to rip off 95%.

Matilah_Singapura said...

Michael Moore's new film Capitalism — A love Story

Despite his obvious hypocrisy, dishonesty and disingenuousness in the claims he make in and about his film (he stands to make many, many millions of dollars — making Moore a really big-time capitalist player), he does wallop the bankers, Wall St... et al

redbean said...

the banks are raising more capitals to pay their ceos.

in the case of chinese ceos, they will all be resigning to join the american companies. and the european ceos also will join the american companies. the american companies can have all the ceos they want and will run down the chinese and european companies.

Anonymous said...

The international rule of thumb is that high pay means less corruption. By definition it therefore means that all head honchos, politicians etc who are not paid highly are all corrupt.

That's the truth, the whole truth with nothing but the proof.

Anonymous said...

maybe thw singapore govt should take the initiative and cap the salaries of the ministers????

Matilah_Singapura said...

Quis custodiet ipsos custodes?

Who caps the salaries and ensures transparency and accountability of those who cap the salaries of others?

Anonymous said...

If you give the ministers the amount that they could even only dream of with full scale corruption,then I do not see the point really.

That my friends,is what happens in Singapore.


If those foreign corrupted,tainted,set to spend the rest of their lives in prison type of politicians learn of what our ministers would get in their life time,with a life of super comfort and luxuries,and retired with full ceremonial honour,they would sure cry:unfair.

But life is not fair indeed

Matilah_Singapura said...

On the weekend I was having a conversation with friends regarding govt. "free money" -- i.e. the money govt gives away to "favoured" parties... whether it is welfare or "fees" to their big-timers.

One friend complained when he said so and so was given several million by the govt to "fix" something... but the money disappeared. I immediately responded that if the govt gave me several million i would make sure the money disappeared... and me too if necessary.

IMO taking money from a thief is no crime, nor immoral.

Anonymous said...

Mr Matilah:

to disappear with the money just does'nt sound right.

Have the money and enjoy a life of plenty in a foreign safe haven sounds a lot more practical.

Your Posting refresh me of Phey Yew Kok, not that i have forgotten about him like the Authority.

patriot