The proposed salary of the Mandatory Provident Fund Schemes Authority (MPFA) managing director is to be cut by 26 per cent, from $5.7 million to $4.2 million. The deputy managing director's salary will be reduced by the same margin, from $4.1 million to $3 million. The Government last month bowed to legislators' demands and said it would reduce the proposed salaries. Legislators had criticised them as too generous in the present economic environment. However, the MPFA board has proposed raising the bonus of the authority's two top executives from 10 per cent to 20 per cent of their basic salary. The rise in bonus, which is subject to performance, means an effective reduction of 18 per cent from the original pay scale proposed by a consultant firm. The proposed salaries of other MPFA staff remain unchanged. The MPFA board's proposal will be submitted soon to Financial Secretary Donald Tsang Yam-kuen for approval. The authority, which will regulate the MPF schemes to be launched next year, will then start recruiting. A member of the MPFA advisory committee, legislator Bernard Charnwut Chan, welcomed the MPFA board's move. 'During the current economic slowdown, it is necessary to ensure the salary of the authority's chiefs should not be too generous,' he said. 'However, I think the MPFA board have to clearly define on what conditions the bonus will be paid to the executives.' Last month, all 12 members of the MPFA advisory committee, which is mainly made up of legislators and pension-fund industry practitioners, attacked the proposed wages as unacceptably high.