Remuneration Disclosures for Statutory Boards and Government-linked Firms

Debated in Parliament on 3 Oct 2022.

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Chua Kheng Wee Louis asked whether the government would mandate remuneration disclosures for Statutory Boards and Fifth Schedule entities like GIC and Temasek, and if not, why.
Chan Chun Sing responded that the Corporate Governance Advisory Committee's recommendation applies to listed companies and that remuneration for Statutory Boards is already overseen by ministries and the Public Service Division, with allowances centrally determined.
He noted that GIC and Temasek, as Fifth Schedule entities, disclose their compensation approaches in annual reports and use performance-based frameworks aligned with industry benchmarks to attract talent and ensure prudent risk management.
The government believes existing governance measures and accountability structures for Statutory Boards and government-linked companies are sufficient and effective for public benefit.
The response emphasizes that while listed companies may face mandatory disclosures, statutory and government-linked entities already have robust oversight mechanisms without needing similar mandatory rules.

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Chua Kheng Wee Louis

Mr Chua Kheng Wee Louis asked the Prime Minister considering the Singapore Exchange Regulation and Corporate Governance Advisory Committee's recommendations for remuneration disclosure of directors and CEOs to be made mandatory (a) whether the Ministry will consider mandating remuneration disclosures for Statutory Boards and Government companies such as entities listed in the Fifth Schedule of the Constitution; and (b) if not, why not.

Chan Chun Sing (for the Prime Minister)

The Corporate Governance Advisory Committee (CGAC) has recommended that SGX considers making CEO and Board Director remuneration disclosures mandatory for listed companies. This recommendation was made as members of the public who are shareholders in these companies will have an interest in knowing the remuneration of the CEO and Board Director to assess if the pay is commensurate with business performance.

Statutory Boards are set up by the Government and are governed by the Public Sector (Governance) Act. The remuneration of Statutory Board CEO and officers are subject to oversight of the supervising Ministry as well as the Public Service Division.

Board Directors who serve on Statutory Boards receive an annual allowance commensurate with the size and complexity of the organisation. The allowance quanta are centrally determined by the Public Service Division.

As for the Fifth Schedule entities which are not statutory boards (namely, GIC and Temasek), the Government, as shareholder, holds their boards accountable for instilling good corporate governance practices, including remuneration.

GIC and Temasek currently disclose information on their compensation approaches in their annual reports. Both GIC and Temasek adopt remuneration frameworks that are based on performance and industry benchmarks to ensure that they can attract and retain talent. These frameworks tie a portion of remuneration to long-term performance, including for senior management, which reinforces prudent risk taking.

Together, these measures and safeguards remain effective in ensuring that Statutory Boards and Government companies put in place proper governance systems, are held accountable and continue to deliver services for the benefit of all Singaporeans.

Summary written by AI (learn more)

Chua Kheng Wee Louis asked whether the government would mandate remuneration disclosures for Statutory Boards and Fifth Schedule entities like GIC and Temasek, and if not, why.
Chan Chun Sing responded that the Corporate Governance Advisory Committee's recommendation applies to listed companies and that remuneration for Statutory Boards is already overseen by ministries and the Public Service Division, with allowances centrally determined.
He noted that GIC and Temasek, as Fifth Schedule entities, disclose their compensation approaches in annual reports and use performance-based frameworks aligned with industry benchmarks to attract talent and ensure prudent risk management.
The government believes existing governance measures and accountability structures for Statutory Boards and government-linked companies are sufficient and effective for public benefit.
The response emphasizes that while listed companies may face mandatory disclosures, statutory and government-linked entities already have robust oversight mechanisms without needing similar mandatory rules.

Questions identified by AI (learn more)

Remuneration Disclosures for Statutory Boards and Government-linked Firms | PAPERCUTS

Remuneration Disclosures for Statutory Boards and Government-linked Firms

Debated in Parliament on 3 Oct 2022.

Summary written by AI (learn more)

Chua Kheng Wee Louis asked whether the government would mandate remuneration disclosures for Statutory Boards and Fifth Schedule entities like GIC and Temasek, and if not, why.
Chan Chun Sing responded that the Corporate Governance Advisory Committee's recommendation applies to listed companies and that remuneration for Statutory Boards is already overseen by ministries and the Public Service Division, with allowances centrally determined.
He noted that GIC and Temasek, as Fifth Schedule entities, disclose their compensation approaches in annual reports and use performance-based frameworks aligned with industry benchmarks to attract talent and ensure prudent risk management.
The government believes existing governance measures and accountability structures for Statutory Boards and government-linked companies are sufficient and effective for public benefit.
The response emphasizes that while listed companies may face mandatory disclosures, statutory and government-linked entities already have robust oversight mechanisms without needing similar mandatory rules.

Questions identified by AI (learn more)

Full Transcript

Chua Kheng Wee Louis

Chan Chun Sing (for the Prime Minister)

Summary written by AI (learn more)

Chua Kheng Wee Louis asked whether the government would mandate remuneration disclosures for Statutory Boards and Fifth Schedule entities like GIC and Temasek, and if not, why.
Chan Chun Sing responded that the Corporate Governance Advisory Committee's recommendation applies to listed companies and that remuneration for Statutory Boards is already overseen by ministries and the Public Service Division, with allowances centrally determined.
He noted that GIC and Temasek, as Fifth Schedule entities, disclose their compensation approaches in annual reports and use performance-based frameworks aligned with industry benchmarks to attract talent and ensure prudent risk management.
The government believes existing governance measures and accountability structures for Statutory Boards and government-linked companies are sufficient and effective for public benefit.
The response emphasizes that while listed companies may face mandatory disclosures, statutory and government-linked entities already have robust oversight mechanisms without needing similar mandatory rules.

Questions identified by AI (learn more)

Remuneration Disclosures for Statutory Boards and Government-linked Firms

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Chua Kheng Wee Louis

Chan Chun Sing (for the Prime Minister)

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Remuneration Disclosures for Statutory Boards and Government-linked Firms

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Questions Identified

Full Transcript

Chua Kheng Wee Louis

Chan Chun Sing (for the Prime Minister)

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Questions Identified