2 March 2006
KCRC Management Committee recommends to grant top-up variable pay to staff
The Management Committee (MC) members of the Kowloon-Canton Railway Corporation (KCRC) welcomed the Managing Board's decision at the Board Meeting on 27 February to honour their contractual agreement with respect to their variable pay of 2005. However, the MC members today announced that they would retain only the original portion of the deducted salaries but would request the Managing Board to reallocate the top-up variable pay granted by the Corporation to all staff.
According to the employment contracts between KCRC and the eight MC members, a certain percentage of their annual remuneration is withheld as contribution to the variable pay. The allocation of the variable pay is determined by the overall performance of the Corporation and that of the individual member. If performances meet target, the Corporation will return the full amount of the deducted salaries to the members. If performances fall below or exceed the targets, the Corporation will deduct or increase the variable pay according to an agreed formula.
Owing to the overall above-target performance of the past year, the Managing Board decided to grant a top-up variable pay to the MC as incentive. However, the MC members recognised that the good performance of the past year owed much to the contribution of the staff. As a token of appreciation for the staff, the MC members have unanimously decided out of their own initiative to retain only the portion of their own contribution to the variable pay and recommend to the Managing Board to reallocate the top-up variable pay to the staff.