The Pakistan Stock Exchange (PSX) was sold to a Chinese consortium that now holds a 40 per cent but the arrangement relationship seems to have hit its first real stumbling block with some brokers and members of the PSX opposing China’s nomination of Richard Morin as managing director.
While the PSX is yet to formally announce Morin’s appointment as the latest MD, officials confirmed that the board of directors has finalised it in principle, the Express Tribune reported.
However, a couple of brokers, showing their concern over the unofficial appointment, said the Canadian national would unnecessarily cost more to the company – the PSX – as he is being appointed at a huge salary and is also being given special perks, including residential allowance and international travelling expenditure.
In addition, a broker said the foreign national would not be aware of “our national culture and particularly, the stock market culture” and this may prove to be a hindrance in his performance.
“The stock market mostly operates on personal rapport and relationship and he (Morin) lacks that on both fronts,” a broker said.
A PSX official, confirming the appointment, however, said they have not received any formal opposition from the brokers and members have the right to have their personal opinions.
“Only the shareholders of the company (PSX) have the right to accept and reject his appointment and approve and disapprove of 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 next month,” he said.