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A new evaluation for chief executives of State-owned enterprises (SOEs) was released yesterday by China's SOE regulatory body as an effort to ensure efficiency in restructuring of these enterprises.

The State-owned Assets Supervision and Administration Commission (SASAC) revealed at a work conference yesterday in Beijing a performance evaluation and payment structure for SOE chiefs, which will take effect next year.

"SOE leaders will have to make concrete commitments to the public on the efficient management and application of State-owned assets," said SASAC director Li Rongrong at the conference.

At the conference, the presidents of 20 major enterprises signed a contract with SASAC to guarantee positive performance. The new contract directly links their salary and bonus with the profitability of their enterprises. The evaluation scheme covers a wide range of indices, said Li Yizhong, deputy director of SASAC.

Those doing the best job will receive up to three times the average salary, which is estimated to be at around 250,000 yuan (US$31,000) per year.

Also yesterday, the SASAC released new regulations to standardize SOE restructuring.

The regulations set pricing standards for State-owned property rights and peg those prices to market conditions.

The prices of State holdings in listed companies should be based on the net asset per share and take into consideration the profitability and performance of the company.

The new regulations also define principles for management buy-outs, in which part of the State-owned rights in the SOEs are transferred to the managerial staff.

However, the regulations set up a system to curb abuses of power, embezzlement and other irregular activities.

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