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SCMP Reporter

Tung is set to pocket millions...

The outgoing chief executive could pocket millions of dollars in outstanding leave pay and an end-of-contract gratuity.

Tung Chee-hwa, who blamed overwork for weakening his health, still had 365 days of unclaimed leave, the Chief Executive's Office said yesterday. In line with the civil service gratuity arrangement, he is also entitled to a lump sum equal to 25 per cent of his salary during his term.

Inquiries to Mr Tung's office on whether he will receive the full gratuity remained unanswered last night. It was also not clear whether he would be paid for his outstanding leave.

Based on Mr Tung's salary of $244,565 a month, he would have been entitled to a gratuity of about $3.6 million after finishing a five-year term. Payment in lieu of unused leave would be at least equivalent to his annual salary of $2.9 million.

Democrat Cheung Man-kwong said the government had to honour whatever contractual terms it had for Mr Tung.

'But I would think an end-of-term gratuity is only for those who have come to the end of their term,' he said. He also questioned the holiday arrangements for the chief executive. In theory, he said, Mr Tung was on duty round the clock.

He stopped short of saying the future leader should not be given annual leave at all, but called for more flexibility.

'Just like legislators, we don't have a specific amount of annual leave.'

Whatever payout Mr Tung may receive from his government job is small change compared with the  package he received from his family shipping firm on the day he was announcing his resignation. Announcing  record earnings on Thursday, Orient Overseas (International)  declared a dividend and bonus share issue  worth $419.74 million to Mr Tung.

...But Tsang will be out of pocket

Donald Tsang Yam-kuen will face a pay cut of more than $50,000 a month if he wins the post of chief executive - and serves under the salary regime of his predecessor.

The chief secretary's present $297,000-a-month salary outstrips Tung Chee-hwa's $244,565.

The pay gap arises from the ministerial system introduced in 2002, which saw a hefty pay rise given to civil servants who switched to political appointments.

Under the civil service system, the chief secretary was paid $210,000 a month and bureau directors about $180,000.

Like the colonial governors, the chief executive's salary was pegged at 125 per cent of the chief secretary's.

When the so-called 'accountability'  system was introduced, Mr Tung's salary remained unchanged but the package for policy secretaries was raised to compensate them for civil service benefits they had to give up upon becoming ministers. The chief secretary's pay swelled to $345,850 and those of bureau directors to $311,900.

Mr Tsang's salary has since been reduced to its present level by a series of pay cuts in line with those imposed on civil servants.

A government official said the pay-cut issue would not arise if Mr Tsang kept his chief secretary's job while acting as chief executive.

But after the six-month acting period, the question of whether the new chief executive should continue to be paid less than his political appointees remained a valid issue waiting to be resolved.

The government would not comment on the salary issue. 'The central government has not taken a decision on Mr Tung's resignation,' a Constitutional Affairs Bureau spokesman said.  'Therefore, at present, we would not comment on matters relating to this issue.'



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Donald Tsang

Tung is set to pocket millions ...But Tsang will be out of pocket