The Beijing State-owned Assets Supervision and Administration Commission published on June 11 a new provisional regulation on assessing proficiency of leaders of state-owned or state-holding enterprises as well as a provisional regulation governing the payment of leaders of such enterprises. Leaders from twenty trial enterprises, including the Shougang Group, Beijing Automotive Industry Holding Co., Ltd and Beijing Tongrentang (Group) Co., Ltd signed business performance evaluation agreements with the Commission.

The two provisional regulations are meant to evaluate the work of legal representatives, Party secretaries and general managers of these enterprises.

Compared with similar regulations in the past, the two documents feature four changes. First, the evaluation target is shifted from enterprise leading team to major persons in charge.

Second, in the selection of evaluation standards, mission statements are turned into economic return indexes focusing on total profits and net asset income rate.

Third, performance evaluation method is introduced to consider both course and result of a leader��s work.

Fourth, in terms of incentive mechanism, operation results are linked with awards or punishments.

The twenty pilot enterprises, though only taking 21 percent in number of the 94 organizations under supervision of the Commission, stand for 54 percent, 41 percent, 94 percent and 52 percent of the enterprises' total in terms of total assets, net total assets, total profits and staff size by the end of 2003.

By People's Daily Online