Reading the article about the Chinese issue of executive brought to my attention the inequality of skill-based pay, but also reinforced my ideas regarding the subject. While it does seem unfair that these Chinese CEOs of publicly owned companies are making astronomical amounts in comparison to the Chinese urban pay average and even more than government workers. Politically, I am a Republican so I believe that these people are deserving of their pay so long as they warrant it. Just because the discrepancy is exceedingly disproportionate doesn’t mean that executives should give up their pay. As was stated in the article, in order to keep the best and highly skilled workers, they need to be paid accordingly. However, I do not disagree with the fact that measures could be taken to increase the minimum wage in China, but that is why China has a competitive advantage globally, their low labor costs. There is little China can do when it is stuck between a rock and a hard place, that is China’s reality and market competition; when it expects to maintain its status as a leader in the global market. The use of skill-based pay, with some profit sharing bonuses on top of that, helps to retain the most knowledgeable CEOs in China, preventing them from going elsewhere in the world.
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