introduction
The sudden incident caused an uproar in the Chinese business community. Xu Jiayin, founder and chairman of China Evergrande Group, has recently been subjected to unprecedented coercive measures. This incident is not only shocking, but also a vivid reflection of the debt crisis that Evergrande Group is experiencing.
Background and debt crisis
Under Xu's promise, Evergrande claimed it would pay off its heavy debts. However, as of the end of June this year, Evergrande was still heavily indebted, amounting to 2,388.2 billion yuan. This figure is enough to deter any business from taking urgent measures to fill the debt gap.
The issue of high salaries for executives
In the context of the spread of the debt crisis, people began to examine the high salaries and dividends received by Evergrande Group executives. This phenomenon has sparked widespread controversy, as executives appear to enjoy lucrative compensation packages even though the company loses money. This not only harmed the rights and interests of creditors, but also hurt the interests of minority shareholders, causing widespread dissatisfaction.
Regulations limit the need for high salaries
Given the urgency of the issue, it is necessary for the Chinese government to introduce regulations to limit the high salaries of executives. These regulations should ensure that high wages are approved by all shareholders and allow companies to recover high wages paid in the past. This will help to establish a more fair and healthy corporate governance mechanism, so as to protect the rights and interests of all parties.
conclusion
Although the Evergrande crisis is worrying, it may also be a new opportunity for China's economic development. By establishing more just and healthy corporate governance, China can reshape its business environment and create more favorable conditions for economic development. Finally, we need to think about how to find new opportunities for economic development in the crisis and promote the healthy development of China's economy.