Former directors of AmCham in Hong Kong allege they were sacked after questioning president Tara Joseph’s pay package

Three former directors of the American Chamber of Commerce in Hong Kong (AmCham) have sent a legal letter to its board of governors alleging they were unfairly dismissed by president Tara Joseph after publicly questioning her pay package, the Post has learned.

According to the letter, which was sent to the board last Wednesday and subsequently seen by the Post, Joseph had terminated their employment with immediate effect the day prior on the grounds they had leaked confidential information about her pay to the board in a May 4 email that also raised concerns over the organisation’s financial situation. 

The three senior employees were in charge of business development; membership and engagement; and government relations and public affairs. A source familiar with the situation said legal proceedings have since been formally launched.

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In their letter, the trio said they reserved the right to take legal action, including the right to file a claim with the Labour Tribunal and sue for damages. Sources indicated they had subsequently taken that step.

The Post has sought comment from Joseph over the past week, while AmCham chairman Robert Grieves said the group does not comment on personnel issues as a matter of policy.

Since Joseph took the helm at AmCham in February 2017, after more than two decades as journalist, the number of employees had shrunk from 26 to 12, including the latest sackings, which would leave AmCham with no directors.

In the legal letter issued to AmCham’s board of governors, the three former employees said they had been “unreasonably dismissed and unfairly treated by Joseph for whistle-blowing against Joseph”.

The disclosure of information to the board was not confidential and they were in a legitimate position to raise their concerns, according to the letter.

“In the light of the circumstances, we hereby urge the board of governors to look into this matter seriously without delay and take all necessary remedial actions,” it said.

Asked if it was possible the three were dismissed for performance-related issues, a source said all three had recently been awarded bonuses to acknowledge their contributions to the chamber.

The May 4 email, which was sent by all of AmCham’s employees to the 25-member board, raised concerns over the approval of Joseph’s HK$300,000 (US$38,700) bonus in February, as the chamber had been running a deficit for several years.

In the email, the organisation’s staff said they were willing to give back their own bonuses to help fix the chamber’s operational problems if Joseph would do the same.

AmCham, which operates as a non-government organisation, posted a loss of more than HK$680,000 in 2016, HK$660,000 in 2017 and HK$1.5 million in 2018, according to audit reports seen by the Post.

Its financial report for last year has not yet been issued to chamber members, but another source said the group would post a record-high deficit of more than HK$2 million, as membership numbers have fallen from a peak of roughly 2,800 in 1996 to fewer than 1,300. The chamber also recently stopped publication of its magazine after 50 years due to financial difficulties.

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“All the staff felt the bonus payment to her was unfair, as they suffered a pay freeze this year,” a source said. “They jointly raised her pay issue to the board as a matter of public interest due to the values AmCham stands for – such as ethical business practices, fairness and transparency required for operating an NGO.”

The source added: “The staff thinks that when there are three consecutive years of deficits, funds should be reinvested into the organisation, not some substantial bonus for an individual.”

Grieves, the chairman, assured all employees in an email that a special committee would be established to investigate the matter and address their concerns.

In a reply to the Post, Grieves said: “With the support of our talented board, staff, our membership and all of our stakeholders, we at AmCham are planning how we can best serve our members and the community as we adapt to the new normal, given the difficult circumstances of this year. We are moving forward on a number of initiatives, including investing in technology and moving forward with a digital mindset.”

Amcham is a founding member of the Independent Commission Against Corruption’s Hong Kong Business Ethics Development Centre, which counts Joseph as a member of its advisory committee.