bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

PCCW chairman Richard Li Tzar-kai wants deputy chairman and managing director Jack So Chak-kwong to quit, according to a source close to the tycoon, who added that Mr So's discretionary bonus for last year was cut by 65 per cent  by the company's  remuneration committee.

However, Mr So insisted he was not resigning.

The source was backed by another person  familiar with the situation in saying that PCCW's five-member remuneration committee, which is chaired by former US assistant secretary of state for Europe Raymond  Seitz, yesterday slashed Mr So's discretionary bonus  based on his performance  last year, citing him for not meeting business targets.

The sources said the remuneration committee criticised Mr So for not actively enhancing the company's business during what was a prosperous year in Hong Kong.

Several financial benchmarks, such as earnings before interest, tax, depreciation and amortisation, cash flow and  share price performance, all missed internal targets,  they said.

PCCW's share price fell 9 per cent year on year. It closed at  HK$4.71 yesterday.

'It's not true and I totally deny it [that I will resign]. I will be the managing director of the company and I will be at the press conference.  I don't know how much bonus I will get!' Mr So said last night.

The company will announce its annual results today, and Mr So - as he has in the past three years - is expected to attend the subsequent press conference.

Mr So renewed his three-year contract with the company  last year, in which his basic salary and housing allowance was increased by 25 per cent to  HK$18.75 million per year. The discretionary bonus for Mr So was HK$8 million in 2005.

'He did perform well in the previous year and his underperformance in 2006 may be due to Mr Li's  proposal to sell his stake in PCCW since June [last year],' the source close to Mr Li said.

'He does not deserve  such high pay. It would benefit PCCW's shareholders if Mr So quits - the savings from his package will boost the company's profit by 3 per cent.' The source did not provide back-up data.

According to both sources, if Mr So steps down, PCCW would promote group chief financial officer Alex Arena to  the post of managing director.



Why wealthy individuals prefer Hong Kong insurance policies for inheritances

Tycoon Richard Li to sell HKEJ publisher to PCCW for US$9 million in asset reshuffle

MetLife to buy Hong Kong tycoon Richard Li’s PineBridge in asset management push

Richard Li’s FWD keeps ‘close eye’ on market amid rumours insurer will refile for IPO

Richard Li Tzar-kai

Jack So won't quit PCCW amid talk Richard Li wants him out