TWO lucky employees at a Li & Fung subsidiary pulled in more than $90 million last year, the group's annual report reveals.
According to the accounts for the 12 months ending December 31, 1994, commissions amounting to $92.63 million were paid to two fund management staff in the United States.
The bonus commission is the biggest payment of its type revealed under new disclosure rules governing director and employee corporate payments.
The amount exceeds the $40 million taken by two directors at Peregrine as emoluments last year, which was about the same as the amount paid to Morgan Stanley chairman and managing director Richard Fisher.
'The commissions represent the incentive fee payable to the staff pursuant to a fund management agreement, on a capital gain realised on an in-house venture capital investment fund during the year which comprised mainly the profit on disposal of shares in Cyrk,' the company report said.
Li & Fung said the disposal of shares in Cyrk accrued a profit to Li & Fung of $457.73 million.
In the profit and loss account for 1994, the sale is shown as an exceptional of $349.01 million.
This represented 63 per cent of the attributable profit, after tax and minorities, of $552.8 million, up 179.8 per cent on the previous year. Operating profit, before exceptionals, was up 15.89 per cent to $215.63 million.
The bonus commission of $92.6 million, which derives from a fund management agreement made in August 1991, represents 42.9 per cent of operating profit.
Also included under exceptional items with the bonus commission of $92.6 million was a $3.65 million performance bonus.
The performance bonus represents the provision of profit sharing arising from a service contract dated June 2, 1992.
The contract was between Li & Fung and the managing director relating to the profit in the disposal of shares in Cyrk, the terms of which were disclosed in the group's prospectus of June 9, 1992.
At the Li & Fung board, the directors' emoluments rose 65.8 per cent to $14.2 million.
The highest paid director got between $7.5 million and $8 million and the second highest director payout was between $6 million and $6.5 million.
The biggest payout in 1993 was not more than $5.5 million for the highest paid director.
Apart from the commission on the Cyrk deal and the directors emoluments, the total paid to the three highest paid employees of the group was $9.26 million against $7.58 million in 1993.
The biggest payout to an employee was up to $4.5 million.