In recent years, central and state-owned enterprises have been questioned about "high salaries for executives". One of the major problems is that the salaries of senior leaders are too high, and the disparity between them and those of front-line workers is too large. This is neither reasonable nor fair. In the face of this situation, I believe that the senior leaders of central enterprises and state-owned enterprises should take the initiative to reduce their salaries and tilt more resources towards front-line employees.
First of all, the salary level of senior leaders of central enterprises and state-owned enterprises has far exceeded the average level of society. According to public data, the average annual salary of general managers of central and state-owned enterprises may be as high as several million yuan. According to the National Bureau of Statistics, the per capita disposable income of urban residents in China in 2020 was only 32,189 yuan. The disparity between the salaries of senior executives of central and state-owned enterprises and the average social wages and the salaries of front-line employees has seriously affected the credibility of enterprises. Senior leaders take the initiative to reduce wages, which can alleviate this impact and is more in line with the requirements of social fairness and justice.
Secondly, the main business of central enterprises and state-owned enterprises is to serve the national economy and people's lives, not for personal high salaries. Senior leaders should be responsible for serving the country and the people, not prioritizing personal income. Reducing individual wages can free up more resources to improve the treatment of front-line employees and enhance the core competitiveness of enterprises. This will be a reform of great significance for central and state-owned enterprises.
In addition, front-line employees directly create corporate value, and their work is often boring, dangerous and insecure. In contrast, senior leaders work differently in nature and have relatively less stress. Senior leaders can take the initiative to lower their salaries to close the unfair gap between frontline workers and management, and can also boost employee motivation and a sense of belonging. This will be extremely important for the long-term development of the enterprise.
In short, the reduction of personal salaries by senior leaders of central SOEs and the investment of more resources in improving the treatment of front-line employees can not only alleviate the negative impact of the problem of "high salaries for senior executives", but also be more in line with the social responsibility and mission of central SOEs. This will be an important step for them to shoulder their historic responsibility. Only through such reforms can central and state-owned enterprises truly become people-oriented enterprises and develop in the long run.