Parliamentary Question by Mr Png Eng Huat:
To ask the Minister for Finance (a) whether there is a remuneration cap for key management staff of Fifth Schedule companies like GIC and Temasek; and (b) for the past five years, what is the range of total annual remuneration, including salary, annual and performance bonuses, paid to the top three highest paid executives in GIC and Temasek respectively.
Parliamentary Reply by Second Minister for Finance, Mr Lawrence Wong:
GIC and Temasek are commercially-run companies. The remunerations of their staff are therefore decided independently by their respective boards. The Government maintains an arms-length relationship with the companies and does not interfere in their operational decisions such as remuneration. Instead, we hold the boards accountable for their respective performances.
Broadly speaking, both entities adopt remuneration frameworks that are based on performance and industry benchmarks. The salaries are benchmarked to the relevant markets and sectors where the entities compete for talent. This ensures that they can attract and retain capable people.
The remuneration frameworks also aim to support and reinforce a prudent risk-taking culture. A portion of the remuneration in both entities is tied to long-term performance. This ensures that staff, including senior management, are rewarded for long-term sustained performance, rather than a focus on short-term gains.
Ultimately, the Government evaluates the performance of the two entities based on their long-term returns, net of all expenses incurred. These figures are published in their annual reports, and they show that both GIC and Temasek have performed creditably under challenging market conditions.