Six top bosses of major state-owned enterprises (SOEs) could have their pay cut because their firms have failed to meet performance targets.

The step, the first of its kind, was announced Wednesday by the State-owned Assets Supervision and Administration Commission (SASAC) which acts on behalf of the state as the owner of and investor in state assets of SOEs.

SASAC is coming good on its earlier pledge to either award or punish SOE chiefs for their performance, Li Shousheng, director of the commission's performance evaluation bureau, said on Tuesday.

Performance-related contracts were signed by chief executives of 180 SOEs, holding them directly responsible for the firms' performance.

Such contracts were a pioneering move for SASAC and part of central government's efforts to improve the efficiency of SOEs and make those running them more accountable.

According to their interim results, six SOEs are unlikely to reach their targets, Li revealed whilst on an inspection tour in the nation's northeastern provinces.

(China Daily October 21, 2004)