Replies to LegCo questions
LCQ7: Remuneration packages of HA senior executives
Following is a question by the Hon Abraham Shek and a written reply by the
Secretary for Health, Welfare and Food, Dr York Chow, in the Legislative Council
today (November 2):
Question:
It has been reported that the consultancy study on the remuneration packages for
senior executives of the Hospital Authority (HA) found that its former Chief
Executive was underpaid by at least 20%. In this connection, will the Government
inform this Council whether it knows:
(a) if HA will take into account its current deficit in determining the
adjustment of the salaries of its Chief Executive and other senior executives;
(b) the HA's timetable for implementing the consultancy report's suggestions
that HA's senior executives' annual bonus should be abolished and that any
change to the remuneration of individual senior executives should be subject to
their performance as determined by an independent panel; and
(c) if a mechanism will be drawn up by HA to ensure that members of the
independent panel will assess the performance of HA's senior executives and
adjust their remuneration in a fair and objective manner?
Reply:
Madam President,
(a) In determining the terms and conditions of employment of its Chief Executive
and other senior executives, the Hospital Authority (HA) will take into
consideration a wide range of factors, most notably the job responsibility of
the post, and the qualification and past performance of the executive concerned.
The financial situation of HA will also be taken into consideration.
(b) At its meeting on September 29, 2005, the HA Board decided to abolish the
granting of performance incentive award (PIA) to its senior executives and
review the relevant pay scales accordingly. Since then, action has been
initiated to implement the decision. With the development of the new range of
pay scales, the HA will convene Assessment Panels for determining how the
remuneration packages of individual executives should be adjusted, on the basis
of the job responsibility of the posts concerned and the performance of the
relevant executives. Recommendations of the Assessment Panels will be submitted
to the HA's Staff Committee, which is chaired by the Chairman of the HA Board,
for consideration. As each individual senior executive has a contractual
arrangement with the HA, HA's current plan is to make changes to the
remuneration packages of its senior executives at the time of contract renewal
or at an earlier mutually agreed date.
(c) The performance of HA's senior executives assessed in a fair and objective
manner by Assessment Panels, as in the case of the present practice. To ensure
impartiality of each of these Panels, majority of its members comprises members
of the HA Board and/or Hospital Governing Committees, who are persons
independent from the HA management. The recommendations of Assessment Panels
will be considered by the HA's Staff Committee.
Ends/Wednesday, November 2, 2005
Issued at HKT 15:33
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