Norman Chan has been appointed Monetary Authority Chief Executive for five years from October 1, while Under Secretary for Constitutional & Mainland Affairs Raymond Tam will succeed him as Director of the Chief Executive's Office from August 1.

Announcing the appointment today Financial Secretary John Tsang said Mr Chan has a deep understanding of local financial markets and banking supervision, and knows the operation of overseas and Mainland financial markets.

"He will assist me in managing the Exchange Fund effectively and provide me with professional advice in the area of monetary policy and other financial matters. Norman has wide experience in public administration and is familiar with the operation of the Government," Mr Tsang said.

Post shift: Financial Secretary John Tsang announces the appointment of Norman Chan as Monetary Authority Chief Executive. He will be succeeded as Director of the Chief Executive's Office by Under Secretary for Constitutional & Mainland Affairs Raymond Tam.

Ideal choice

Chief Executive Donald Tsang said Mr Chan has taken on very difficult assignments in his present post.

"He is a person with a very agile mind, totally committed to Hong Kong, and is highly respected in the banking and financial sectors both locally and overseas. I believe he will be an excellent Monetary Authority Chief Executive."

Mr Chan said the authority's top tasks will be to maintain local monetary and banking stability, the normal functioning of credit markets and prudent management of the Exchange Fund, while developing renminbi business in Hong Kong.

"Together with colleagues in the [authority], I shall use my best endeavours to maintain Hong Kong's position as the premier international financial centre in Asia," Mr Chan said.

New remuneration

The Financial Secretary and authority chief executive Joseph Yam agreed in August 2007 the latter's appointment would end this September. A three-member group was invited to recommend suitable candidates for the post last August. It shortlisted eight out of 39 people from the authority, regulatory agencies, banks, academia and the Government at the end of last year. Mr Chan topped the list.

After consultation with the Exchange Fund Advisory Committee Governance Sub-Committee, the Financial Secretary decided to fix the authority chief's term at five years and set annual fixed pay at $6 million throughout the five-year term.

The maximum level of the performance linked variable pay will be set at $1.5 million for the first year. The total pay package of the new chief will be 32% lower than the incumbent. The new chief's post-termination control period will also be extended from six months to one year.

CE office director

Describing Mr Tam as a person with exceptional qualities, excellent interpersonal skills and great experience in administrative and political work, the Chief Executive said he was chosen for his ability, integrity and commitment to Hong Kong and believed Mr Tam will do well in his new position.

Mr Tam told reporters he will devote himself to serving and contributing to the community.

"I will proactively maintain close communication with Executive Council and Legislative Council members. I will strive to solicit LegCo members' support for the work of the administration.

"I will as always listen to different views of different sectors with humility, understand the needs of different sectors of the community with empathy, explain the rationale of government policies with patience, face the challenges arising from work with faith and serve the people of Hong Kong with sincerity."

The Constitutional & Mainland Affairs Bureau said Mr Tam has made an important contribution to the branch during his tenure, particularly on human rights issues, promoting the Race Discrimination Ordinance's implementation and dealing with the revised law to enable imprisoned people to vote.

Outgoing HKMA chief

The Chief Executive and Financial Secretary thanked Joseph Yam for his contribution to Hong Kong's economy.

"Joseph is a long-term friend and colleague of mine. He is one of the most capable public servants I have had the privilege to work with. Through his many years of hard work and full commitment to serving Hong Kong, Joseph has established himself as one of the most respected leaders representing Hong Kong as an international finance centre. We are all very proud of his achievement. I wish him every success in his future endeavours," the Chief Executive said.

Click here for Mr Chan's biography and here for Mr Tam's.