China mulling higher pay for SOE executives

Singapore

CHINA is considering increasing executive compensation at big banks and other state-owned enterprises (SOEs), according to a person with knowledge of the plan, as the government seeks to retain talent needed to overhaul the bloated state sector.

Premier Li Keqiang told a meeting of more than 100 top executives in Beijing last month the government was rethinking a 2015 policy capping their pay at a fraction of their overseas peers, said the person, who asked not to be named because the meeting was private. Mr Li promised a system with more competitive rates, probably tied to performance, the person added, in an effort to hold onto their managers.