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Govt does not interfere in salary decisions for top brass at GIC, Temasek: Lawrence Wong

SINGAPORE — The Government maintains an “arms-length relationship” with GIC and Temasek Holdings and does not interfere in their operational decisions, Second Finance Minister Lawrence Wong said, declining to reveal the salaries of top management at the two firms.

Second Finance Minister Lawrence Wong declined to reveal the salaries of top management at Singapore's sovereign wealth fund GIC and state investment firm Temasek Holdings.

Second Finance Minister Lawrence Wong declined to reveal the salaries of top management at Singapore's sovereign wealth fund GIC and state investment firm Temasek Holdings.

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SINGAPORE — The Government maintains an “arms-length relationship” with GIC and Temasek Holdings and does not interfere in their operational decisions, Second Finance Minister Lawrence Wong said, declining to reveal the salaries of top management at the two firms.

Instead, the Government holds their boards accountable for their performances, he added.

Mr Wong, who is also Minister for National Development and sits on the GIC’s board of directors, was responding on Wednesday (May 8) to Workers’ Party Member of Parliament (MP) Png Eng Huat, who asked if there is a remuneration cap for key management of companies such as sovereign wealth fund GIC and state-owned investor Temasek Holdings.

Mr Png asked for the range of total annual remuneration — including salary, annual and performance bonuses — of the three highest-paid executives at GIC and Temasek Holdings over the past five years.

Mr Wong said that remuneration is based on performance and industry benchmarks, and supports a “prudent risk-taking culture”. A portion of the remuneration at both entities are also tied to long-term performance.

Pressing for figures, Mr Png said: “These two entities are managing our reserves, and the Government is the sole shareholder. Usually, shareholders would know the remuneration packages for the companies they own.”

Mr Wong did not budge. There is a system in place to determine compensation and past performances of the two firms show that the system works, he said.

The system does not focus on “one or two expense items” such as remuneration; it consists of a “thorough assessment” to determine long-term expected returns — which then have to be proposed to the president of the country, who will conduct an independent assessment with the help of advisers.

“Ultimately, the Government evaluates the performance of the two entities based on their long-term returns, net of all expenses incurred,” Mr Wong said.

The returns can be found in their annual reports, he said.

While Temasek Holdings does not disclose the salaries of its executives in its annual report, a section on its website describes its compensation framework, which is benchmarked against relevant markets and includes incentives and clawbacks based on performance.

Related topics

Parliament GIC Temasek Holdings salary

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