In recent years, sky-high compensation for executives has been controversial, especially in state-owned enterprises. Many people are puzzled by the high amount of executive compensation, especially when employees work hard and are paid relatively low salaries. Behind this lies the phenomenon of "secret salary system" that is common in state-owned enterprises.
The so-called "secret salary system" means that the information on executive compensation is kept confidential and not disclosed to the public. SOEs often adopt this system on the grounds of protecting the privacy of executives and avoiding salary leaks. However, this system has brought great benefits to the executives, while the employees have been treated unfairly.
On the one hand, executive compensation is often unbelievably high. They enjoy high annual salaries, bonuses and equity incentive plans, and can even be compared to the executives of internationally renowned companies. This phenomenon is not only common in state-owned enterprises, but also in some private enterprises. The remuneration level of executives far exceeds the salaries of employees, giving people the feeling of "sky-high prices for executives and low salaries for employees". Not only does this feel unfair to employees, but it also sparks dissatisfaction and turmoil within the organization.
On the other hand, employees work hard and are paid relatively low wages. They often have to carry heavy loads and put in more effort, but only in exchange for a small return. This unfair phenomenon can easily lead to low employee morale, decreased work motivation, and even an increase in turnover rate. The "secret salary system" of state-owned enterprises not only does not protect the interests of employees, but also exacerbates the pay gap between employees and executives.
On the one hand, state-owned enterprises are often regarded as important pillars of the state, and the decision-making and management of senior executives are of great importance to the development of enterprises. As a result, they believe that executives' compensation should be matched with their responsibilities and contributions to attract and retain talent. On the other hand, keeping salary information confidential can also avoid triggering social instability and preventing jealousy and strife among employees.
However, SOEs should reflect on the rationality and practical effects of the "secret salary system". On the one hand, executive compensation should be reasonably and fairly commensurate with their contributions, and should not be overstated. On the other hand, we should strengthen the care and motivation of employees, and improve the salary level of employees, so as to stimulate their enthusiasm and creativity. Only on the basis of achieving fair remuneration between executives and employees can state-owned enterprises truly achieve sustainable development and maximize their benefits.
In short, although the "secret salary system" of state-owned enterprises may protect the privacy of executives and avoid the disclosure of remuneration to a certain extent, it has brought unfair and unstable factors to the pay gap between executives and employees. SOEs should review and adjust the compensation system to achieve fair and reasonable compensation between executives and employees, so as to promote the healthy development of the organization and the enthusiasm of employees.