Order of the state owned assets supervision and Administration Commission of the State Council
Number thirty-third
The measures for the assessment of the operational performance of the persons in charge of central enterprises have been deliberated and approved by the chairman's office meeting of the state owned assets supervision and Administration Commission of the State Council, and are hereby promulgated with the approval of the leading group for deepening the reform of the remuneration system for the persons in charge of state owned enterprises. These Measures shall come into force as of the date of promulgation.
Xiao Yaqing, director of the state owned assets supervision and Administration Commission of the State Council
December 8, 2016
Measures for the assessment of business performance of persons in charge of central enterprises
Chapter I General Provisions
Article 1 In order to fulfill the responsibilities of investors of state-owned assets, safeguard the rights and interests of the owners, implement the responsibility of maintaining and increasing the value of state-owned assets, establish and improve the effective incentive and restraint mechanism, guide the central enterprises to improve the quality, increase efficiency and upgrade, and achieve the goal of becoming stronger, better and bigger, according to the law of the people's Republic of China on state owned assets of enterprises, the Interim Regulations on the supervision and administration of state-owned assets of enterprises and other relevant laws and regulations These measures are formulated in accordance with the regulations and the guiding opinions of the CPC Central Committee and the State Council on deepening the reform of state-owned enterprises (ZF [2015] No. 22) and the relevant provisions on deepening the reform of the compensation system for the heads of central management enterprises.
Article 2 the persons in charge of the central enterprises examined in these Measures refer to the persons managed by the central government and the state owned assets supervision and Administration Commission of the State Council (hereinafter referred to as SASAC) in the state funded enterprises (hereinafter referred to as enterprises) authorized by the State Council to perform the functions of investors.
Article 3 the business performance assessment of the person in charge of the enterprise shall follow the following principles:
（1） Adhere to laws and regulations. Strictly implement the relevant laws and regulations of the state, establish and improve the asset management responsibility system of legal and compliant operation and traceability in accordance with the requirements of the unity of rights, obligations and responsibilities.
（2） Adhere to the market-oriented reform direction. According to the internal requirements of market economy and the law of enterprise development, carry out the classified assessment that is suitable for the functional orientation, business nature and business characteristics of the enterprise, so as to improve the pertinence and effectiveness of the assessment.
（3） Adherence is closely combined with incentive and restraint. It is necessary to establish a differentiated incentive and constraint mechanism that matches with the selection of the person in charge of the enterprise, adapts to the functional orientation of the enterprise, and is closely related to the business performance.
（4） Adhere to the unity of short-term goals and long-term development. Strengthen international benchmarking and industry benchmarking, build a combination of annual assessment and tenure assessment, based on the current and long-term assessment system.
Article 4 the annual business performance appraisal and term of office business performance appraisal shall be carried out by the way that the director of SASAC or his authorized representative signs the letter of responsibility for business performance with the principal of the enterprise.
Chapter II assessment guidance
Article 5 give prominence to the quality of development, guide enterprises to firmly establish the development concept of innovation, coordination, green, opening and sharing, actively adapt to and lead the new normal of economic development, continuously improve operation and management, and achieve high-quality and sustainable development.
Article 6 pay attention to the efficiency of capital operation, guide enterprises to take improving economic benefits as the center, optimize capital layout, standardize capital operation, improve capital return, maintain capital security, and improve the ability of value creation.
Article 7 accurately define the functions of enterprises, guide enterprises to play an important role in serving national strategic objectives, safeguarding national security and national economic operation, developing forward-looking strategic industries and completing special tasks, enhance the vitality of state-owned economy and enlarge the functions of state-owned capital.
Article 8 adhere to innovation and development, guide enterprises to deeply implement innovation driven development strategy, strengthen independent innovation, strengthen collaborative innovation, vigorously promote mass entrepreneurship and innovation, accelerate the transformation of scientific and technological achievements, and enhance core competitiveness.
One belt, one road, ninth, we should take the initiative to participate in the major projects of "one belt and one road", strengthen cooperation in international capacity and equipment manufacturing, and promote products, technologies, standards and services to go out, participate in international market competition in a standardized and orderly manner, and cultivate world-class companies.
Article 10 we should improve the accountability mechanism, guide enterprises to make scientific decisions, operate in accordance with laws and regulations, guard against business risks and prevent the loss of state-owned assets.
Chapter III classification assessment
Article 11 according to the strategic positioning and development objectives of state-owned capital, combined with the actual situation of the enterprise, we should focus on different assessment focuses for enterprises with different functions and categories, set up reasonable assessment indicators and weights for business performance, determine the assessment standards for differentiation, and implement classified assessment.
Article 12 commercial enterprises whose main businesses are in fully competitive industries and fields shall be guided by enhancing the vitality of the state-owned economy, enlarging the functions of state-owned capital, and realizing the maintenance and appreciation of state-owned capital. They shall focus on assessing the economic benefits, capital return level and market competitiveness of enterprises, and guide enterprises to improve the efficiency of capital operation and enhance value creativity. Encourage enterprises to take social responsibility actively.
Article 13 For the commercial enterprises whose main business is in the important industries and key fields which are related to national security and the lifeblood of national economy and who mainly undertake major special tasks, guided by supporting the sustainable development of enterprises and serving the national strategy, on the basis of ensuring reasonable returns and maintaining and increasing the value of state-owned capital, we should strengthen the service of national strategy, guarantee national security and the operation and development prospect of national economy Assessment of strategic industries and completion of major special tasks. Adjust the evaluation weight of the economic benefit index and the state-owned capital maintenance and appreciation rate index, and reasonably determine the capital cost rate of the economic added value index. Enterprises undertaking national security, industry common technology or national major special tasks with poor performance without special objective reasons shall be deducted or degraded in performance assessment.
Article 14 public welfare enterprises shall be guided by supporting enterprises to better protect the people's livelihood, serve the society and provide public products and services, adhere to the combination of economic and social benefits, put social benefits first, and focus on the assessment of product service quality, cost control, operation efficiency and guarantee ability. According to the characteristics of different enterprises, the indexes of economic added value and state-owned capital value preservation and appreciation rate are included in the annual and term assessment, and the assessment weight and return requirements are appropriately reduced. The third-party evaluation is introduced into the social benefit index, and the enterprises with poor evaluation results will be deducted or degraded in the performance evaluation according to the specific situation.
Article 15 according to the nature of business operation, development stage, short board of management and industrial function of the enterprise, targeted differential assessment indicators shall be set up.
Article 16 establish and improve the management system of special items list in performance appraisal. Special issues undertaken by the enterprise, such as safeguarding national security, providing public services, developing important forward-looking strategic industries, and implementing "going global" major strategic projects, shall be included in the management list. Special issues that have a significant impact on the current business performance shall be properly handled during the assessment.
Chapter IV objective management
Article 17 the SASAC shall, in accordance with the principles that the development of the enterprise is in line with the speed of the development of the national economy, that it matches the role of the backbone in the national economic construction, and that it is in line with the requirements of strengthening, optimizing and enlarging the enterprise, determine the overall objectives of the enterprise's business performance (hereinafter referred to as the overall objectives).
Article 18 the assessment target value of an enterprise shall be connected with the overall target value, which shall be verified on the basis of the benchmark value according to the conditions of different functional enterprises.
Article 19 the benchmark value of annual appraisal shall be determined comprehensively according to the completion value of the previous year and the average value of the completion value of the previous three years, external factors and industry benchmarking.
Article 20 the target value of annual total profit and economic added value (also called economic profit, the same below) indicators shall be set as three levels.
The first level: the target value has reached the best level in history, or it is significantly better than the completed value of the previous year and the growth rate is higher than the overall goal of the enterprise.
Second gear: the target value is not lower than the reference value.
Third gear: the target value is lower than the reference value.
After industry benchmarking, if the target value is at the international excellent level or the domestic leading level, it will not enter the third target.
Article 21 the SASAC shall closely combine the total annual profit and the target value of the economic added value index with the assessment score and result rating.
For the first target value, full score will be given for the indicator after completion, and bonus will be given according to the advanced level of the target value.
Target value of the second gear, normal score after completion.
For the third target value, the bonus points are limited after completion, and the assessment results shall not enter A-level.
Article 22 the target value of total profit is linked to the total wage budget.
For the first target, the total wage budget is higher than that of the previous year. Special rewards may be given to those who have exceeded their targets in accordance with the total wage budget management system.
In principle, the target value of the second level and the total wage budget shall not be lower than the level of the previous year (unless the target value is much lower than the completion value of the previous year).
For the third target value, the total wage budget should be lower than that of the previous year.
Article 23 the benchmark value for the evaluation of the term of office shall be determined on the basis of the completion value of the previous term and the completion value of the third year of the previous term. Full score will be given for each assessment target value after the completion of benchmarking at the industry's excellent level; bonus points for the assessment target value lower than the benchmark value are limited.
Chapter V Implementation of assessment
Article 24 under the leadership of the SASAC, the performance appraisal leading group of the SASAC shall organize and implement the business performance appraisal of the person in charge of the enterprise.
Article 25 the annual business performance appraisal shall be conducted in Gregorian calendar year, and the term of office business performance appraisal shall be conducted in three years.
Article 26 contents of the letter of responsibility for business performance:
（1） Name, position and name of both parties;
（2） Assessment contents and indicators;
（3） Assessment, reward and punishment;
（4） Change, cancellation and termination of the letter of responsibility;
（5） Other matters to be agreed.
Article 27 procedures for signing the letter of responsibility for business performance:
（1） At the beginning of the assessment period, the enterprise shall, in accordance with the requirements of the operation performance assessment of the SASAC, submit the proposed value of the assessment objectives and necessary explanatory materials to the SASAC.
（2） SASAC shall review the recommended value of the assessment objective and determine it after communicating with the enterprise on the assessment objective value and relevant contents.
（3） The director of SASAC or his authorized representative shall sign a letter of responsibility for business performance with the principal of the enterprise.
Article 28 during the assessment period, SASAC shall carry out dynamic monitoring on the implementation of the letter of responsibility for business performance, and give early warning to the enterprises whose progress of the completion of the assessment objectives is not ideal.
Article 29 a reporting system for major events shall be established. In case of major or above production safety accidents, major or above environmental emergencies, major or above quality accidents, major asset losses, major legal disputes, major investment and financing and asset restructuring, which have a significant impact on business performance, the enterprise shall timely report to the SASAC, and copy to the board of supervisors dispatched to the enterprise.
Article 30 the completion of business performance shall be assessed in accordance with the following procedures:
（1） At the end of the assessment period, the enterprise shall, based on the audited financial final accounts data, form a summary and analysis report of business performance and submit it to the SASAC, with a copy to the board of supervisors stationed in the enterprise.
（2） Based on the audited and audited financial final accounts report of the enterprise and the reviewed statistical data, combined with the summary and analysis report and the opinions of the board of supervisors, SASAC will assess the completion of the assessment objectives of the person in charge of the enterprise, and form the assessment, reward and punishment opinions.
（3） The SASAC will feedback the assessment, rewards and punishments to the enterprise where the person in charge of the enterprise is located. If the person in charge of the enterprise disagrees with the assessment, rewards and punishments, he / she can report to SASAC in time. SASAC will disclose the final assessment results within a certain range.
Article 31 the board of directors shall exercise its authority to assess the management's business performance.
（1） For the enterprise whose board of directors assesses the manager level, SASAC and the authorized representative of the board of directors sign the annual and term of office business performance responsibility letter. The board of directors assesses the manager level's business performance according to the SASAC assessment requirements and in combination with the actual situation of the enterprise.
（2） According to the signed letter of responsibility for business performance and the completion of the assessment objectives of the board of directors, SASAC shall determine the annual and term business performance assessment scores and grades of the main principals of the enterprise.
（3） The board of directors shall determine the assessment results and salary distribution scheme of the management according to the assessment results of business performance determined by SASAC and the performance of the managers.
Article 32 the board of directors shall formulate and improve the internal business performance assessment methods of the enterprise and report to the SASAC for the record.
Chapter VI rewards and punishments
Article 33 the annual business performance appraisal and term of office business performance appraisal are divided into four grades: A, B, C and D.
Article 34 The state owned assets supervision and Administration Commission shall reward and punish the person in charge of the enterprise according to the results of the annual and term of office performance appraisal. The results of business performance evaluation are the main basis of salary distribution and the important basis of post appointment and removal.
Article 35 the remuneration of the person in charge of an enterprise shall be composed of three parts: basic annual salary, performance annual salary and term incentive income. The basic annual salary is the annual basic income of the person in charge of the enterprise.
Article 36 the person in charge of an enterprise shall be given material and spiritual incentives. Material incentive mainly includes annual performance salary and term incentive income linked to the results of business performance appraisal. The spiritual encouragement mainly includes the way of giving a notice of commendation and so on.
Article 37 the annual performance salary of the person in charge of an enterprise shall be determined on the basis of the basic annual salary, according to the results of the annual business performance appraisal and in combination with the adjustment coefficient of the annual performance salary.
Article 38 the performance annual salary shall be paid in advance on a monthly basis according to a certain proportion. The SASAC shall adjust the annual salary of the enterprise's principal according to the results of the half year pre evaluation of the annual business performance, and the relevant measures shall be formulated separately.
Article 39 The term incentive income shall be determined within 30% of the total annual salary level of the person in charge of the enterprise according to the results of the term operation performance evaluation.
Article 40 If the person in charge of an enterprise is incompetent in the annual comprehensive assessment, he shall not receive the annual salary for performance. If the comprehensive assessment of the term of office is not competent, no term incentive income shall be collected.
Article 41 the distribution coefficient of the main person in charge of the enterprise is 1. The distribution coefficient of the rest of the examinees shall be determined by the enterprise between 0.6 and 0.9 according to the results of the business performance evaluation of each person in charge, and the gap shall be appropriately widened. The distribution plan shall be implemented after being submitted to the SASAC for examination and filing, and a copy shall be sent to the board of supervisors stationed in the enterprise.
Article 42 those who have made outstanding contributions to the achievement of major scientific and technological innovation achievements, undertaking major special tasks and social participation shall be given bonus points in the annual business performance assessment.
Article 43 in case of outstanding business performance and outstanding achievements in scientific and technological innovation, brand building, international operation, energy conservation and emission reduction, the term of office of the enterprise shall be encouraged after assessment by SASAC.
Article 44 If the result of annual business performance assessment for two consecutive years is level D or the result of tenure business performance assessment is level D, and there is no significant objective reason, the person in charge of the enterprise shall be adjusted.
Article 45 in case of any of the following circumstances, the SASAC shall, according to the specific circumstances, degrade or deduct points, and accordingly deduct or recover the annual performance salary or term incentive income of the legal representative of the enterprise and the relevant person in charge; in case of serious circumstances, the SASAC shall give disciplinary punishment or adjust the person in charge of the enterprise; in case of suspected crime, the SASAC shall transfer the case to the judicial organ for handling according to law:
（1） In violation of the accounting law of the people's Republic of China, the accounting standards for business enterprises and other relevant laws and regulations, making false or concealed financial statements;
（2） The legal representative and relevant person in charge of the enterprise violate national laws and regulations, resulting in major decision-making errors, major or above production safety liability accidents, major quality liability accidents, major environmental pollution liability accidents, major violations of discipline and legal disputes, overseas vicious competition, resulting in major adverse effects or loss of state-owned assets.
Chapter VII supplementary provisions
Article 46 the SASAC may change the relevant contents of the statement of responsibility for business performance according to the specific conditions in case of the enterprise's assets liquidation, capital verification, restructuring and change of the main person in charge during the assessment period.
Article 47 If there are other provisions on the assessment of the person in charge of the full-time party organization and the Secretary of the Commission for Discipline Inspection (the leader of the discipline inspection team) of the central enterprise, such provisions shall prevail.
Article 48 the business performance assessment of the persons in charge of the state-owned capital joint stock companies and the merged enterprises under the management of SASAC shall be carried out with reference to these measures. The specific business performance assessment items shall be determined in the business performance responsibility statement.
Article 49 for newly established enterprises and state-owned capital investment and operation companies that have not yet entered into normal operation and are mainly engaged in special technology research and development, one enterprise one policy shall be adopted for business performance assessment.
Article 50 the state-owned assets supervision and administration institutions of all provinces, autonomous regions, municipalities directly under the central government, Xinjiang production and Construction Corps, and the state-owned assets supervision and administration institutions at the level of cities divided into districts and autonomous prefectures may refer to these measures and formulate specific provisions in combination with the actual situation for the assessment of the business performance of the persons in charge of state funded enterprises.
Article 51 The SASAC shall be responsible for the interpretation of these measures, and the specific implementation plan shall be formulated separately.
Article 52 these Measures shall come into force as of the date of promulgation. The Interim Measures for the assessment of the business performance of the persons in charge of central enterprises (Order No. 30 of the state owned assets commission) shall be repealed at the same time.
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