Chen's decision is really a no-brainer if you compare his new salary at Hang Lung with the one he got at Swire:
Cathay boss set to fly high with Hang Lung
Derek Yiu
Wednesday, April 28, 2010
After days of intense speculation, the future of outgoing Swire Pacific (0019) heavyweight Philip Chen Nan-lok is now clear.
He will join Hang Lung Group (0010) and subsidiary Hang Lung Properties (0101) as managing director of both firms.
And he will get HK$21 million a year for his services.
Chen - the first Chinese to head Cathay Pacific (0293) - announced on April 19 that he will step down as chairman of John Swire & Sons (China), deputy chairman of Cathay Pacific and all other Swire posts on July 1. He said the decision was prompted by his "desire to pursue other interests."
The shock announcement triggered media speculation that Chen will join PCCW (0008) - which issued an immediate denial - or Hysan Development (0014).
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Hang Lung chairman Ronnie Chan Chi-chung said he looks forward to working closely with Chen, and that their appointment talks began "a few months ago."
"Chen is a well-rounded person, with experience in all aspects and also has a good personality," Chan said. "I think he is a management professional who is hard to come by," he told The Standard.
Chan said though Chen lacks property experience, the departing Swire executive will prove to be a good leader for Hang Lung's property experts.
"I believe the group will have bright prospects with Chen as managing director," he said.
Chen will succeed Nelson Yuen Wai-leung on July 15.
That is the day Yuen retires after 32 years of service with the group to become a board adviser. He has been managing director for the past 17 years.
Chan noted Chen's pay will be "exactly the same" as Yuen's was because he will have similar responsibilities.
According to Hang Lung's statement to the bourse, Chen is, apart from the HK$21 million a year, entitled to a bonus of HK$5.2 million at the end of June next year.
In addition, Chen will be granted the option to apply for 10 million Hang Lung Properties shares and receive a director's fee from Hang Lung Group.
His total remuneration from the Swire Group in 2008 and 2009 was HK$15.1 million and HK$14.2 million, respectively.
Hang Lung Group closed down 3.3 percent at HK$39 and Hang Lung Properties ended 2.7 percent down at HK$29.20 before Chen's appointment was announced.