Richard Li faces CyberWorks fireworks
2001-05-27
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Pacific Century CyberWorks chairman Richard Li Tzar-kai faced angry shareholders yesterday at his company's annual meeting - where he told them the embattled firm would post a profit this year.
Mr Li was questioned over directors' salaries and the plunge in the price of the firm's shares.
One woman's anger centred on deputy chairman Francis Yuen Tin-fan, who is believed to have received a package worth $ 283 million last year, largely from trading stock options.
"Why would you raise your directors' remuneration while we did not receive a cent of dividend last year?" she asked. "Yuen Tin-fan is making hundreds of millions in salary - is that fair?"
Referring to the performance of the company's share price since the merger with Hong Kong Telecom last year, she said: "When we made the decision (to accept your offer) last year, we did not know your company's share price would fall so drastically."
The price of PCCW's shares has fallen more than 82 per cent since the company took over HKT on August 17, closing at $ 2.70 yesterday.
Mr Li told the meeting: "Our core telecom operation will drive cost -effectiveness across our company, and we aim to enhance value for our shareholders.
"We are confident that we will turn in some profits this year." Last year, PCCW recorded a loss of $ 6.91 billion.
Mr Li stressed that the document outlining the merger with HKT last year had said it would not declare any dividends.
"The merger would make us a growth company, not a dividend company," said Mr Li. "When we proposed a merger, HKT shareholders were given the right to vote for or against it."
Another shareholder - who had previously defended Mr Li's efforts to encourage growth for the company - retorted: "You can't say that to minority shareholders, just to pass off your responsibility."
About six out of around 100 shareholders present spoke at the meeting.
Some were supportive, with one saying: "We support your leadership to encourage growth in our company, and we will be long-term shareholders."
But after the meeting, some continued to air their grievances. Retired grocery store worker Wong King-sang, 75, invested her life savings in 8,000 CyberWorks shares last year which she bought at $ 18.50 per share. She described her situation as "most unfair".
"Many small investors like me are retirees. I spent almost every dollar of my lifetime savings to buy their shares, because Hongkong Telecom was reliable," Ms Wong said.
"Now the price has plunged more than 80 per cent. I am left with only 20 per cent of my assets. You tell me if this is ridiculous."
Ko Shui-wah, 54, also complained about the plummeting share price. She bought 30,000 PCCW shares at $ 5.70, but said she did not expect them to return to that level for years.
"It will probably be my children who will have a chance to see the price reach back to $ 5.70. The company is really hopeless now," Ms Ko said.
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