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Bangkok Post – “Proposed Revisions to Outdated State Enterprise Laws by Government Office”

Article Summary:

The State Enterprise Policy Office (Sepo) is set to revise state enterprise laws and regulations in an effort to enhance operational flexibility. Director-general Tibordee Wattanakul emphasized the need for these amendments due to outdated rules that hinder competitiveness.

One significant change will target the 2005 regulation on chief executive remuneration, which no longer aligns with current market rates. This has resulted in state-owned enterprises struggling to attract high-caliber professionals, especially when compared to private sector compensation.

In the banking sector, executives can earn total compensation, including bonuses, of around 10 million baht annually. Conversely, leaders of large state enterprises like the Government Savings Bank face constraints due to their complex organizational structures, which can limit their ability to offer competitive salaries and incentives.

Original Article:

Bangkok Post – Office eager to amend outdated state enterprise laws

The State Enterprise Policy Office (Sepo) looks set to “guillotine” state enterprise laws and regulations to improve their operational flexibility.

According to Tibordee Wattanakul, director-general of Sepo, the office plans to amend laws and regulations related to state-owned enterprises because some of them are outdated.

For example, a 2005 regulation governing remuneration of chief executives no longer reflects real market rates, leaving state-owned enterprises with insufficient incentives to attract high-potential professionals compared with the private sector.

At commercial banks, total compensation including bonuses can reach around 10 million baht per year.

Meanwhile, high-ranking executives of some large state enterprises, such as Government Savings Bank, which have complex organisational structures and numerous subsidiaries (Dhipaya Insurance and MFC Asset…

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