Hong Kong railway chief got big payout in lieu of year's notice, MTR reveals

The HK$15.7 million contractual settlement former MTR chief Jay Walder received when he abruptly stepped down in August was "in lieu of his 12-month notice period", according to a paper the city's rail operator submitted to the legislature.

Walder's surprise departure, a year before the end of his contract, came after an internal report accused him of failing to be more critical in monitoring the progress of the now over-budget and delayed high-speed link to Guangzhou.

The news of the payout had sparked outrage from the public, legislators and minority shareholders that the MTR was too generous to Walder.

The MTR said it entered into a separation agreement with Walder on the day it announced he would be leaving the firm.

"Neither Walder's employment contract nor the Employment Ordinance provides for specific payment … to an employee whose employment contract is terminated by mutual agreement," the paper said.

"The payments made to Walder were agreed with him."