Aligning Senior Management Incentive Structures at Temasek Holdings and GIC with Government Investment Mandates

Parliamentary Question by Mr Ng Shi Xuan:

To ask the Prime Minister and Minister for Finance whether the Government has information on how senior management incentives at Temasek Holdings and GIC are structured to balance (i) long-term value creation (ii) prudent risk-taking and (iii) capital preservation in accordance with the investment mandates given by the Government.

Parliamentary Reply by Senior Minister of State for Finance, Mr Jeffrey Siow:

GIC and Temasek are commercial entities. Therefore, senior management incentives are decided by their respective boards. The Government does not interfere in their operational decisions, including for their senior management remuneration.

Both GIC and Temasek have said that they adopt remuneration frameworks for their senior management which are market competitive and promote good performance. The Government will continue to assess entities’ performance in meeting their mandates net of fees and expenses.