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Ben Kwok

Sullivan knows what insurance is all about
You don't deserve to be the head of world's largest insurance company if you don't get yourself a parachute of a package for getting fired.
American International Group's president and chief executive Martin Sullivan, who was fired on Father's Day, certainly found some protection.
As detailed in a 71-page executive compensation document posted on http://www.ezodproxy.com/AIG/2008/Proxy2008/HTML1/aig_proxy2008_0048.htm, the 36-year AIG veteran is entitled to a golden handshake of at least US$35.03 million if terminated either by the company without 'cause' or for 'good reason', that is, one way or another.
An American financial paper said he could get as much as US$50 million in severance pay.
His executive contract specifically defined 'good reason' as Mr Sullivan's failure to secure shareholders' approval to re-elect himself to the board of directors. It was not difficult to see why he was ousted after AIG fell into consecutive quarter losses and its stock value fell 41 per cent year to date, accumulating a loss of US$100 billion in market value.
Mr Sullivan obviously learned an important 'insurance lesson' from his predecessor Maurice  Greenberg (who was ousted amid an accounting scandal in 2005), judging from how carefully he drafted his employment contract.
Under his break-up contract, Mr Sullivan will get a minimum of US$15 million, which is three times his severance pay and cash bonus, and three years of continued health and life insurance coverage, pension plans and other retiree medical and life insurance benefits.
Other AIG executives are also well insured. For one, vice-chairman Edmund Tse Sze-wing can retire on a US$27.1 million package, but would get US$31.3 million if he was terminated without cause. Last year Mr Tse made US$9.98 million, down 37 per cent.
Now you know why AIG management chose to use the famous tag line: 'The strength to be there.'
Wharf veteran gets old seat
It may not be easy for financial analysts to attach a face to the chief financial officer of Wharf (Holdings), but he is no stranger to the group.
Paul Tsui Yiu-cheung, 61, a  career executive in the Wheelock Group, returned to his old seat with his appointment as director yesterday.
He was Wharf's director from September 2000 till March 2003 and the de facto chief financial officer.
He is director of Wharf's other flagships Wheelock Properties (Singapore), Wheelock Properties and Joyce Boutique, having joined the Wheelock/Wharf group  in the early 80s.
Award for shunning subprime
HSBC may have lost its ranking as the best domestic bank this year but it still can claim proudly that it has retained half of the honour.
Subsidiary Hang Seng Bank was rewarded Asiamoney magazine's award yesterday, being credited for good risk management, corporate governance and disclosure as remaining one of the very few Hong Kong banks with absolutely no subprime exposure.
Thanks to a healthy balance sheet, the bank now moved up the ladder to become the No43 largest bank in the world by market capitalisation as of the end of May.
The ultimate in philately
Question of the day: how much is the value of a Penny Black stamp issued back in 1840?
Answer: A block of eight unused postage stamps, the world's first adhesive postage, is now worth about #750,000 (HK$11.48 million).
A block of four Penny Black stamps is worth #325,000.
Well, not everyone can afford a penny stamp (whose value grew more than 9 million times over the past 168 years) but anyone can view the real thing at the Smart Investment and International Property Expo to be held in the Hong Kong Convention and Exhibition Centre this weekend.



Lai See