XN000022-1985-08-07 — Page 35

WEDNESDAY, AUGUST 7, 1985

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SALARY RISE FOR DIRECTORATE APPROVED

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THE FINANCE COMMITTEE TODAY (WEDNESDAY) APPROVED A

RECOMMENDATION BY THE INDEPENDENT STANDING COMMITTEE ON DIRECTORATE SALARIES AND CONDITIONS OF SERVICE TO INCREASE CIVIL SERVICE DIRECTORATE SALARIES BY BETWEEN 6 AND 13 PER CENT.

THE RECOMMENDATION, CONTAINED IN THE NINTH REPORT OF THE STANDING COMMITTEE, HAD EARLIER BEEN ENDORSED BY THE EXECUTIVE COUNCIL.

IT FOLLOWED A THOROUGH SURVEY WHICH SHOWED THAT SENIOR CIVIL SERVICE SALARIES HAD LAGGED BEHIND THOSE OF SENIOR EXECUTIVES IN THE PRIVATE SECTOR FOR THE PAST THREE YEARS.

THE INCREASES APPROVED TODAY WOULD HELP NARROW THE GAP.

THE LAST OVERALL REVIEW OF DIRECTORATE STRUCTURE, SALARIES AND OTHER CONDITIONS OF SERVICE WAS CONDUCTED BY THE STANDING COMMITTEE IN 1982, AND THE LAST SURVEY OF REMUNERATION OF SENIOR MANAGEMENT IN THE PRIVATE SECTOR WAS CARRIED OUT IN 1980.

THE LATEST SURVEY OF PRIVATE SECTOR REMUNERATION, WHICH FORMED THE BASIS OF THE COMMITTEE'S FINDINGS, WAS CONDUCTED BY SENIOR PARTNERS OF PEAT, MARWICK, MITCHELL AND CO AND PRICE WATERHOUSE ON AN INDEPENDENT BASIS.

THE CONFIDENTIAL SURVEY COVERED SALARIES AND FRINGE BENEFITS AT SENIOR MANAGEMENT LEVELS IN THE PRIVATE SECTOR. IT ENCOMPASSED 34 COMPANIES MAKING UP A REPRESENTATIVE CROSS-SECTION OF HONG KONG'S ECONOMIC LIFE.

THE COMMITTEE, HOWEVER, SPECIFICALLY EXCLUDED FROM ITS CONSIDERATION THE LEVEL OF REMUNERATION OF TOP EXECUTIVES IN THE HIGHEST PAYING COMPANIES, AND ADOPTED AS A GENERAL RULE THE LEVEL OF REMUNERATION FOR SENIOR MANAGEMENT IN THE MIDDLE RANGE OF COMPANIES.

WHILE THERE WERE NO OBVIOUS COMPARISONS BETWEEN THE PRIVATE SECTOR AND SENIOR CIVIL SERVICE JOBS. THE COMMITTEE FELT THAT DIRECTORATE SALARIES SHOULD NOT LAG TOO FAR BEHIND THOSE IN THE PRIVATE SECTOR.

IT ALSO SAW A NEED TO PROVIDE A SUFFICIENTLY ATTRACTIVE SALARY AND CAREER STRUCTURE AT THE SENIOR LEVELS OF THE CIVIL SERVICE TO ENSURE THE RECRUITMENT AND RETENTION OF MEN AND WOMEN OF HIGH CALIBRE.

/THE REVISED