A draft decree to regulate the salaries of high-ranking officials atState-owned and partially State-owned enterprises has been introducedfor review by the Ministry of Labour, Invalids and Social Affairs(MOLISA).
The draft decree is designed to regulatesalaries for members of the boards of directors, director generals,directors and head accountants.
It also aims toallocate individuals' salaries with respect to the enterprises'performance and profitability. Top leaders' salaries, which range from40 million VND (1,800 USD) to 100 million VND (4,600 USD), would bedetermined based on the enterprises' profitability.
AMOLISA study indicated the average salary of top officials insmall-to-medium sized enterprises (SMEs) was between 45 million VND(2,100 USD) to 70 million VND (3,200 USD), while CEOs at largerenterprises were paid up to 120 million VND (5,600 USD).
MOLISA's draft decree aims to reduce the salary gap between bosses andother employees, as well as the average salary of the country's labourmarket.
The decree would also allow a salary bonusof 15-20 percent if an enterprise exceeds its projected financial goalsas a growth incentive. On the other hand, enterprises which fail toachieve their targets would not be entitled to a bonus.
A recent survey by the ministry of 345 State-owned and partiallyState-owned SMEs showed the average salary for regular employees was 10million VND (460 USD), while top officials earned 25 million VND (1,150USD).
The gap is even higher in larger enterprises, withtop CEO salaries ranging from 70 million VND (3,200 USD) to 155 millionVND (7,200 USD). Notably, many enterprises that failed to producepositive financial performances, or in some cases, even made financiallosses, still rewarded their top CEOs with salaries of 45 million VND(2,100 USD), some 14 times greater than an employee's salary.-VNA