Why is Temasek’s CEO’s remuneration a state secret?

temasek

What is the annual remuneration of Temasek’s CEO?

I understand that the annual salary of the CEO of Norway’s sovereign wealth fund, is about S$1.1 million.

The portfolio of Norway’s sovereign wealth fund is more than US$ 1 trillion.

In contrast, Temasek’s portfolio is about S$308 billion.

So, what is the annual remuneration of Temasek’s CEO?

As Temasek is managing taxpayers’ money – why is it, as I understand it, that this question has never been asked in Parliament?

What is the total remuneration over the years, since Temasek’s CEO became the CEO?

Is it the norm for the other sovereign wealth funds to not disclose their CEO’S remuneration?

In this connection, according to the article “Norway’s $1 Trillion Oil Fund Taken to Task Over Rising Cost” (Bloomberg, Jan 18, 2018) – “The ministry said that management costs have risen “significantly over time” and are projected to hit 3.5 billion kroner ($446 million) this year, up from 2.1 billion kroner in 2014. The ministry pointed out that based on its 2017-2019 strategy plan the fund is now running ahead of schedule in terms of employees.”

So, does it mean that the “management costs” of Norway’s Sovereign Wealth Fund (SWF) is about 0.05 per cent ($446 million divided by $1 trillion) of its portfolio value?

To the best of my knowledge, I understand that Temasek does not disclose its  “management costs” (such as the CEO’s annual remuneration) like Norway’s SWF.

What we know is that Temasek’s administrative expenses were S$8.4 billion in 2017, on a net portfolio value of S$275 billion.

Of course, Temasek has clarified that its “administrative expenses” – “”This (administrative expenses) also included expenses of subsidiary companies such Singapore Airlines, PSA, and others, and not for Temasek Holdings only”” (“Temasek Holdings responds to NSP’s claims“, Yahoo News, Aug 23, 2011).

Perhaps Temasek can go one step further by disclosing its “management costs” like Norway’s SWF.

Do most SWFs report “management costs” like Norway’s or just “administrative expenses” like Temasek?

Do most SWFs report “administrative expenses” that include the “expenses of subsidiary companies” (which it owns wholly or partly in its portfolio?) like Temasek?

Leong Sze Hian

About the Author

Leong
Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.