Singapore's Temasek to cut pay

[Alcapone]

Can cutting salary build public's confidence? How to make good what is lost?

 

http://news.sg.msn.com/article.aspx?cp-documentid=1797813

 

Singapore's Temasek Holdings, one of the world's largest sovereign wealth funds, says it will cut staff salaries in the face of a global economic slowdown.

 

"We anticipate a global recession in 2009 and possibly beyond. Therefore, Temasek will institute a firm-wide wage cut, led by senior management who volunteered 15 to 25 percent," the firm's managing director of human resources, Robert Chong, said in a statement issued late Friday.

 

"In total, nearly 90 percent of the wage saving will be borne by our key managers."

 

Temasek's executive director and chief executive officer is Ho Ching, the wife of Prime Minister Lee Hsien Loong.

 

"As a long-term investor, we believe this current crisis will throw up tremendous opportunities. Yet, we also recognise the short-term challenges and will adjust our actions appropriately," Robert Chong said.

 

Temasek revealed its pay cuts on the same day the government further downgraded its growth forecast for 2008, pledged 1.5 billion US dollars in credit support for businesses, and said the economy -- already in recession -- could contract next year.

 

Since December, Temasek has invested billions of dollars in the US bank Merrill Lynch, a victim of the meltdown in the United States subprime, or higher-risk, mortgage sector which precipitated a global credit squeeze and economic slowdown.

 

Bank of America announced in September that it was buying Merrill Lynch.

 

While announcing the pay cut, Chong said Temasek also plans to increase staffing by about 15 percent over the next two years. The company currently employs 350 people, according to its website.

 

Temasek controls some of Asia's best-known firms and in October reported a record profit of 18.2 billion dollars (11.9 billion US) in the year to March.

 

It said its portfolio rose in value to 185 billion Singapore dollars, and Citigroup Global Markets last October listed Temasek as among the largest sovereign wealth funds (SWFs) in the world.

 

SWFs are a form of government-created investment vehicle which has emerged as a potent force on global financial markets, prompting concerns the funds are too opaque and could pose threats to national security.

 

Temasek has claimed a record of transparency.

[BMW320i]

10-15% pay cut is alot.

 

So how much are they drawing now ? 6 digit ?

[Alcapone]

i think they should also make transparent how much in absolute amount is the cut?

[Knighthunter]

SHAMELESS...SHAMELESS....

Lost so much money in the investment no head rolls, now wants to take example to other by pay cut. They should be sacked that's example!

[Wanderer]

Yup, alot is depends on their current drawn pay now....

[Blackyv]

well, since it's not an open book, cut pay they announce but did they massage their bonus package as well but not mentioned???....

[Chrispie]

PAy cut by 15-25%, but bonus increase by 50%. Sounds like a plan maybe?

[Ff2004]

Ya you are right!

Cut 15% but get 50% increase bonus....

[Hotsoup]

It happens everytime when there is a econ downturn, cut 10-15% and later increase 20-25% when the econ pick ups. It's a way to diverse our mindset using this oppounity to gain our synmpthy and support and later increase so no one would complaaint or even take notice of it. sigh....

[Check13]

Good move, this will stop the man on the street from asking how many billions temasak has lose on the recent purchases, and from asking the lady to quit.

 

All the generals gotta sacrifice their pay to save the empress dowager.

[Tiny_planet]

SHAMELESS...SHAMELESS....

Lost so much money in the investment no head rolls, now wants to take example to other by pay cut. They should be sacked that's example!

 

Yes, the fund managers should be sacked for all the blunders ... If this happens to an international banks or financial institutions, they will given the exit !