What price a director? In HK, the figures run from feast to famine

Some independent directors in Hong Kong get paid barely more than the average tea lady while some get a handsome salary. Why the big discrepancy?

San Miguel Brewery Hong Kong last week announced executive directors Keisuke Nishimura and Motoyasu Ishihara will be paid annual remuneration of HK$50,000. This works out at HK$4,166 per month.

Just down the road directors at the Hong Kong Exchanges and Clearing receive up to half a million dollars a year in remuneration.

Some argue that a director's role is not a full-time position and they should only receive a token salary. Other says independent directors play an important role at publicly listed companies. Although they are not full-time, they attend board meetings and represent the interests of small shareholders. It is therefore arguable they should be paid a reasonable fee that matches their duties.

Whatever the argument, the huge gap between payments underscores the difficulties companies have in determining pay for non-executive directors.

Despite unveiling a second successive decline in annual profit, HKEx gave both staff and non-executive directors a pay rise. This raised another issue of pay not being linked with company performance.

HKEx chairman Ronald Arculli's salary rose to HK$500,000 from HK$450,0000 while each of the other 11 non-executive directors had their remuneration increased to HK$350,000, from HK$300,0000.