How much has Temasek’s double bonus scheme cost taxpayers?

Temasek’s double bonus scheme – extremely costly to taxpayers – was implemented to obscenely reward senior management executives.

On top of annual cash bonuses, senior executives are paid an additional wealth added (WA) bonus.

In the past, WA bonuses were disclosed in a bar chart, together with annual cash bonuses and salaries plus benefits.  From 2013, Temasek disclosed only WA bonuses.

WA was also made to appear insignificant by including other larger figures (Image 1 below).
Image 11temasek10

Source: Temasek Review 2012 page 65 (image slightly edited and rotated)

Stripped of the ‘noise’, ie WA clawback, etc, we can see clearly that WA bonuses formed a significant portion of total remuneration (Image 2).

Image 2
1temasek14

For example, in 2008, the amount of WA bonus was more than 400% of annual cash bonuses and was almost 50% of total remuneration.

Since remuneration is benchmarked against “relevant markets where we compete for talent”, ie private sector and Temasek is basically unchecked by stakeholders, it is more likely that the compensation formula rewards senior executives obscene amounts in tax dollars.

Recall that in the same year, PAP ministers had also rewarded themselves with 19-months’ bonuses.

How much was the ‘more than 400% of cash bonus’ in WA bonuses paid to senior management in 2008?

Hundreds of millions?  More than $1 billion?

Since Ho Ching became CEO, were billions in tax dollars collectively pocketed by senior management of Temasek from WA bonuses alone?

Employees deserve a bonus for good performance but a double bonus scheme for managing state reserves?

PS

The WA double bonus scheme is still in existence.  If Temasek has done nothing wrong, it should not fear transparency.

 

 

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