Taipei, March 11, 2010 (CENS)--The Executive Yuan (the Cabinet) resolved yesterday (March 10) to cap the pays for chairmen and presidents of enterprises in which the government owns controlling stake at NT$324,000 and NT$318,000, respectively.

The pay ceilings are set according to the principle that chairmen and presidents representing government`s stakes in those enterprises cannot exceed two times the pays for their counterparts of state firms with similar business scale. The regulation, dubbed "anti-fat cat" article, will take effect from April.

The regulation will have extensive effect, since the Ministry of Finance (MOF) alone owns controlling stake in 108 enterprises. Some institutions under the jurisdiction of Financial Supervisory Commission (FSC), including Taiwan Stock Exchange, Joint Credit Information Center, Taiwan Depository and Clearing Corp., and Taiwan Academy of Banking and Finance, will also be affected.

The president of Hua Nan Financial Holding, for instance, will see his salary drop to NT$300,000, from NT$450,000 now, compared with existing pay of NT$150,000 for the president of state-run Taiwan Financial Holding.

In addition, irregular compensations for those chairmen and presidents, including performance bonus and year-end bonus, cannot exceed their fixed incomes, including monthly pays and supervisory differential pay.

The Executive Yuan also passed a program yesterday encouraging employees of state enterprises to take an early retirement at preferential terms, in order to invigorate manpower and enhance productivity.

(by Philip Liu)