Time to review executive rewards for CEO

Time to review executive rewards for CEOs and political leaders in government-owned companies

In a letter to the Straits Times Forum today, Mr Liew Kai Khiun expressed his outrage at the bonus of $20 million paid to CapitaLand chief executive officer (CEO) Liew Mun Leong . (read letter here)

Mr Liew wrote that “such remuneration concentrated on certain individuals would widen income disparities and demoralise the public by creating a winner-takes-all climate”.

While I do not begrudge CEOs of major corporate companies their due entitlement to a hefy bonus as a reward for their performance, questions must be raised about the salaries and bonuses of government leaders who are holding positions in government-linked companies.

There should be a clear line drawn between the ruling and business classes. The government should not be involved in the corporate sector in the first place.

Since the government is now deeply entrenched in all sectors of Singapore’s economy, it should adopt certain basic standards of corporate governance such as releasing the salaries and bonuses of its top honchos.

To be fair to Mr Liew, he is brave enough to put himself under public scrutiny by declaring the bonuses he received last year.

Capitaland is owned by Temasek Holdings. If Mr Liew received $20 million dollars of bonuses, what about his superior, Madam Ho Ching, the CEO of Temasek?

What is the Madam Ho’s annual salary and will she receive any severance package after leaving Temasek in October this year? Does she deserve any bonuses last year at all for the dismal performance of Temasek?

Her father-in-law Mr Lee Kuan Yew is already receiving an estimated sum of S$3 million dollars a year as the Minister Mentor of Singapore on top of the annual pension he is entitled to receive (if I am not wrong, it is about two-thirds of his annual pay). Is he being paid for as Chairman of GIC and how much were his bonuses, if they are any last year?

Regardless of whether Temasek and GIC are independent corporate entities owned by the Ministry of Finance or the government’s investment vehicles to manage the country’s reserves, either way, they are expected to be accountable to the public.

In major corporate firms, the shareholders decide on the amount of bonuses to be paid to its Chairman. Who determines the bonuses of the GIC Chairman?

Where does GIC and Temasek obtain their funding from? Do they come from the pockets of the Lee family or from every tax-paying citizen of Singapore? Why are Singaporeans being kept in the dark about the salaries and bonuses of its top honchos when we are in fact their paymasters?

I agree with Mr Liew that significant additional taxes should be imposed on individual bonuses of high earners to give the public a greater sense of fairness and decency.

For a start, I propose the government reveal the following information of public interest which is long overdue:

1. The salaries and bonuses of all the staff of GIC and Temasek Holdings.

2. The identities of PAP ministers and MPs who are holding directorships in government-linked companies and their renumeration packages.

3. The assets of all PAP ministers and MPs, including shares owned in government-linked companies and properties.

If the government of Singapore is indeed as incorruptible, transparent and accountable as it often claims, then its leaders should not be afraid to reveal their salaries and bonuses which after all comes from Singapore taxpayers.

How can you expect us to pay for something and yet not tell us how much we are paying for? Are Singaporeans getting a good deal from the government?

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