Board approves extension of Li's term, suggesting he will hold reins long enough for his son to take over top job
Bank of East Asia chairman and chief executive David Li Kwok-po, 64, has won board approval to extend his term at the helm of Hong Kong's fifth-largest lender for up to five years.
Analysts said the renewal of Mr Li's contract underlined the hold he retained over the family-controlled bank and could pave the way for his son to assume the top job in 2009.
Since turning 60, Mr Li has retained his post at the discretion of the board. His son, Adrian Li Man-kiu, was appointed general manager and head of corporate banking in 2001, and is regarded by analysts as an heir-apparent for the job.
'The extension of Mr Li's term will buy time for his son to take over when he finally leaves,' an analyst said. 'It's hard to say what other implications may follow from the move - though arguably someone else might have had a more relaxed attitude towards a merger approach.'
Bank of East Asia did not return requests for comment.
Mr Li has disclosed an interest of just 1.25 per cent in Bank of East Asia, but analysts believe his network of extended family ties enables him to call on the support of more than 20 per cent of shareholder votes. The biggest Li family shareholding in the bank (3.19 per cent) was disclosed in the latest annual report as being held by Simon Li Fook-sean, a former vice-president of the Court of Appeal and Mr Li's great uncle. Other relatives with sizeable holdings include Li Fook-wo, with 2.19 per cent, and Aubrey Li Kwok-sing, who holds 2.11 per cent.