The Pakistan Stock Exchange (PSX) has nominated Richard Morin, a Canadian citizen, as its next Managing Director. He was also endorsed by the Chinese investors as well. However, the decision to nominate him as the PSX Managing Director has been opposed by some local members and brokers.
According to PSX, the decision to usher in Mr. Richard as the Managing Director has not been officially announced but some officials confirmed that the decision has been finalized by the Board of Directors in principle.
The brokers and members explained the purpose behind their opposition by arguing that the hired MD is a Canadian National and he will be given a large amount of salary along with other special perks, including residential allowance and international traveling expenditures.
According to Market Talk, the salary of the hired MD has been fixed at Rs 3 million.
Moreover, the opposition members also suggested that as he is an outsider, he will not be managing things according to “our national culture and particularly, the stock market culture”. This may prove to be a drawback in his management style, local members fear.
“The stock market mostly operates on personal reputation and relationship and he (Morin) lacks that on both fronts”, a broker said.
On the other hand, a PSX official told that they have not received any formal opposition from the members.
“Only the shareholders of the company (PSX) have the right to accept and reject his appointment and approve and disapprove his monthly package. They may do this at the forthcoming Annual General Meeting likely to be held at the end of this month or at the beginning of the next month”, an official said.
He further added that Morin is a well experienced official. He has previously served in the Canadian stock markets and the Stock Exchange of Mauritius.