Executives from State-owned companies will begin seeing smaller salaries this year.

The reform will first target some 200 executives from 72 State-owned companies, such as China Mobile and China National Petroleum Corporation, the national largest oil and gas producer.

Under the new guidelines, salaries for senior executives will be trimmed to about eight times the pay of the average worker, down from about 12 times now.

The cutbacks will later expand to other State-owned companies.

For years, the yawning gap between what is paid to top executives and average workers at these State companies has led to complaints from the public, and the move to narrow the gap is part of a broader plan to reform the inefficient State sector.