The Ministry of Economic Affairs will cap monthly salaries paid to the heads of subsidiaries of state-run enterprises amid recent complaints against “government fat cats,” with the new regulations taking effect tomorrow.
The state-run firms refer to those that fall under the ministry’s supervision, such as Taiwan Power Co (Taipower, 台電) and CPC Corp, Taiwan (CPC, 中油), and the subsidiaries refer to direct subsidiaries of the state-run firms and the subsidiaries’ reinvested firms.
The new regulations, posted on the ministry’s Web site, state that the monthly salary of people appointed to or recommended by state enterprises to serve as chairpersons or presidents of their subsidiaries and reinvestment units can go as high as 1.2 times that of their previous salary working at state-run firms. However, their monthly salary will be capped at about the same level for presidents in their previous state-run post, it said.
In addition, payments such as bonuses and subsidies will be limited to the equivalent of six-months salary, according to the statement.
The ministry estimates that this would help the nation save NT$17.78 million (US$597,400) each month in salaries. For instance, new heads at Taiwan Cogeneration Corp (台汽電), a Taipower subsidiary, and Taiwan Cogeneration’s two reinvestment units — Star Energy Corp (星能) and Hsing-yuan Power Corp (星元) — will receive NT$5.83 million less in total salaries each month, according to the ministry.
As for CPC’s five subsidiaries and reinvestment units, including China American Petrochemical Co (中美和石化) and CPC-Shell Lubricant Co (中殼潤滑油), their heads will receive NT$11.95 million less in overall salaries per month, the ministry said.