Wed, Jan 16, 2008 - Page 12 News List

Lyu confirmed as chairman of Mega Financial Holding

By Joyce Huang  /  STAFF REPORTER

Joseph Lyu (呂桔誠) was confirmed yesterday as chairman of state-controlled financial services provider Mega Financial Holding Co (兆豐金控).

Lyu said he would reach out to the company's labor unions, which had long expressed opposition to the newly elected management team he leads.

'win-win'

"I'd like to create a win-win situation for clients, employees and shareholders," Lyu told reporters after Mega Financial's board meeting, which approved his chairmanship and Ray Dawn's (董瑞斌) presidency.

"Human capital and innovation are key and these are the most important determiners of the financial services sector's success," he said.

The labor union at Mega Financial subsidiary Mega International Commercial Bank (兆豐國際商銀), formerly known as the International Commercial Bank of China (ICBC, 中國商銀), on Monday accused Lyu of violating the "revolving door" clause. The clause forbids government officials from working for private companies they formerly regulated within three years of leaving office.

Lyu, a former minister of finance, dismissed the accusation yesterday, saying the ministry had not regulated the banking sector since the establishment of the Financial Supervisory Commission in 2004.

wait-and-see

Mega Financial subsidiary labor unions said yesterday they would adopt a wait-and-see approach to Lyu.

"We hope the new chairman will work sincerely to protect the rights of bank employees," said Hsu Chen-chiang (許鎮強), chairman of the ICBC labor union.

The Mega International labor union said it wanted a seat on the bank's board.

"We hope the government will grant one of the financial provider's 15 seats to an employee representative," said Tsai Yuan-cheng (蔡元鎮), chairman of the Mega International labor union.

Meanwhile, incoming Mega president Dawn lauded the unions' contributions to Mega, whose earnings per share of NT$1.63 last year he said were the fourth highest in the sector.

Asked if he might have to step down after the presidential election in March, Lyu said he would do his best regardless of the length of his term.

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