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Flotation plan puts cap on high salaries for directors

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DIRECTORS of China-Hongkong Photo Products Holdings, which launches its public offering this week, paid themselves a total of about $318 million during the last three years, according to the company's prospectus.

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Managing director Dennis Sun Tai-lun and his father were the only two directors of the company, which holds the franchise for Fuji films in Hong Kong and Macau.

The payments were only slightly less than the net $388 million they plan to raise from the company's upcoming public flotation.

Analysts expressed surprise at the size of the directors' pay although the company's prospectus states that directors emoluments will be scaled back sharply once China-Hongkong Photo is floated.

The company has decided to cap its remuneration fees at 10 per cent of operating profit upon listing and estimates that payments to the full board of directors will total about $20 million.

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According to the prospectus, China-Hongkong Photo paid $113.88 million to the directors for the financial year 1994, more than half the year's earnings of $218 million.

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