|
Vietnam to keep close tabs on corporate bonuses
The Ministry of Labor, Invalids and Social Affairs is drafting a decree on employee and executive bonuses at joint-stock companies in which the state holds a majority stake, a ministry official has said.
Executive bonuses will be the main targets of the decree as they have skyrocketed in recent times yet their companies’ performances have been mediocre at best, Hoang Minh Hao, deputy head of the ministry’s wages and salary department, told the investment newsletter Dau Tu Chung Khoan.
“The decree will provide regulations on setting salary and bonus levels at joint-stock companies where the government owns 51 percent or more of the shares.
“For example, any increase in bonuses for a firm’s directors and supervisory board members will depend on the return on capital,” Hao said.
The decree will be a legal basis for shareholders acting on behalf of the government when they vote on the proposed bonuses at annual meetings, he said.
Hao insisted the decree would not be an imposition.
The government holds a controlling interest in some 1,200 of the 5,400 state-owned companies that were equitized.
Dau Tu Chung Khoan
Thanh nien
|
