Free

Executive Pay Excesses: Golden Handshakes & (Potential) Breach of Directors...

Event Information

Share this event

Date and Time

Location

Location

UCL Cruciform LT2

Gower Street

London

WC1E 6BT

United Kingdom

View Map

Friends Who Are Going
Event description

Description

Organised by the UCL Centre for Ethics and Law

Speaker

Chee Keong LOW (CUHK Business School)

About this event
As there are no provisions in the Companies Ordinance in Hong Kong which govern the issue of ‘golden handshakes’, it is left to the directors of companies to determine if such termination payments are in the best interest of the company. If a director is criticized by an independent board committee of ‘poor judgment’ as well as lacking the exercise of ‘critical judgment’, should members of the board of directors be held accountable if they sanction a contractual settlement which is later acknowledged as being ‘in lieu of the 12-month notice period’?

This seminar explores the circumstances leading to the resignation of Mr Jay Walder, the then Chief Executive Officer of the MTR Corporation Limited, from the office on 15 August 2014, a year earlier than scheduled. Despite his failure in escalating certain crucial information to the board of directors to enable its making of more informed decisions, he was nonetheless provided with a ‘golden handshake’ of some US$2 million. While such a payment is ‘immaterial’ against the profitability of the MTR Corporation, it nonetheless does cast aspersions over the aspirations of the government to promote Hong Kong as the ‘paragon for corporate governance in Asia’ given its status as the majority shareholder with approximately 77 percent of the shares in the company.


About the Centre
UCL Centre for Ethics & Law was established in 2009 to reflect the growing need for enhanced collaboration between academics, practicing lawyers and industry, given the fast changing and increasingly interdisciplinary nature of the global issues lying at the intersection between ethics and regulatory compliance. The work of the Centre is resolutely multi-disciplinary and practice-oriented, focusing on a number of current themes including the professional ethics of in-house and external legal counsel, ethics of risk, anti-corruption, global business and human rights, and distributive justice.






Share with friends

Date and Time

Location

UCL Cruciform LT2

Gower Street

London

WC1E 6BT

United Kingdom

View Map

Save This Event

Event Saved