Promoting More Widespread Remuneration Disclosures by Listed Companies

Assoc Prof Jamus Jerome Lim asked the Minister for Finance in light of SGX’s efforts to promote more widespread remuneration disclosures by listed companies done in compliance with Singapore’s Code of Corporate Governance, whether the Ministry will consider (i) instituting industry best practices on remuneration disclosures for Government investment entities on average or for key management personnel and (ii) requiring Temasek Holdings to make bonus disclosures on average or for key management personnel.

Singapore’s Code of Corporate Governance relates to remuneration disclosures by listed companies. The information is useful for public shareholders to make an informed judgement about listed companies. Not being listed companies, the Code does not apply to GIC and Temasek.

Nevertheless, as the shareholder of GIC and Temasek, the Government monitors both investment entities on their long-term performance, net of fees or expenses. This takes into account their overall expenses, including staff cost.

We had addressed the issue of public disclosure practices and the specific level of disclosures at MOF’s COS last year. GIC and Temasek are commercial entities. It is the boards of GIC and Temasek that are responsible for such decisions. The Government, in turn, holds the boards accountable for instilling good corporate governance practices.

GIC and Temasek, currently, disclose relevant information in their annual reports, including their compensation approaches and how these are linked to their performances. Both have disclosed more information over the years. We encourage them to continually review whether there are other meaningful additional disclosures to make. The Government’s principle is that what the entities disclose should be part of an overall system that enables them to maximise their ability to achieve their objective of generating long-term returns.