BANK of Communications Co. (BoCom), the country’s fifth-largest listed lender, is mulling stock incentives for its management as part of a plan to sell stakes to private investors.

    The Shanghai-based bank is mulling mixed ownership reforms, which may include stock incentive plans, according to the bank’s vice president Qian Wenhui. But Qian said that discussion on any specific details would be premature. The move, if implemented, would be a first for a listed Chinese bank.

    Last month, sources said that BoCom, which last week reported that first-half profit was up 5.6 percent, plans to sell stakes to private investors under government reforms aimed at allowing private capital play a larger role in the economy.

    The move comes as President Xi Jinping looks to curb unreasonably high salaries for executives at major State-owned enterprises (SOEs), according to Xinhua.

    Chinese State firms — which control crucial sectors of the economy — are often lambasted for being inefficient and not handing over profits to the nation despite enjoying generous subsidies from the State.

    The South China Morning Post reported Thursday that senior executives of SOEs face pay cuts of up to 50 percent under a reform plan approved by Xi, citing unidentified sources.

    In November, the government instructed SOEs to bring in private investors to ramp up efficiency and competitiveness and lower debt. (SD-Agencies)