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(b) The HKMA's remuneration terms, irrespective of ranks, are determined by reference to the prevailing market rates. Pay level and pay trend surveys are conducted by an independent consultant every year to establish whether pay packages and their intended annual adjustments are in line with the market. On the basis of the results of these surveys, and having regard to performance, the Financial Secretary, on the advice of the Exchange Fund Advisory Committee (EFAC), determines the remuneration packages of individual senior officers including the Chief Executive. Under delegated authority, the Chief Executive in turn determines the remuneration packages of other officers, subject to the overall budget approved by the Financial Secretary on the advice of the EFAC.

(c)

The Administration considers that the mechanism for determining the remuneration packages for HKMA staff to be appropriate, having regard to the circumstances described above. Adequate control is exercised by the Financial Secretary on the advice of the EFAC, whose members are familiar with the market practice regarding pay package determination and adjustment.

Remuneration package of HKMA staff

Following is a question by the Hon Sin Chung-kai and a written reply by the acting Secretary for Financial Services, Mrs Lessie Wei, in the Legislative Council today (Wednesday):

Question:

According to the 1995 Annual Report of the Hong Kong Monetary Authority (HKMA), the expenses on staff costs increased from $196 million in 1994 to $250 million in 1995. In this connection, will the Government inform this Council of:

(a)

the comparisons between the remuneration package of staff at different levels of the directorate of the HKMA and that of their counterparts in the civil service, in each of the years from 1993 to 1995;