Temasek Holdings Pay Cut to Lead by Example

Singapore investment vehicle, Temasek Holdings, which oversees $130 billion or more, said senior management has volunteered a 15 percent to 25 percent pay cut.

I welcome this move but I would like the cut to be more and bonuses to be freezed after billions are lost from many failed investments in companies like Shin Corp, ABC Learning, Chartered Semiconductor and several badly battered U.S banks. From what I know, salaries for the senior management are undisclosed and they must be a lot since Chief Ho Ching is now ranked number 7 richest woman in the world.

I think this timely move is to send out a signal to corporates that cutting pay should be exercised first before laying off employees in tough times. I am in favour of this move. The monthly variable component in an employee's salary should be adjusted to tide with bad times. I shall not comment on the recent retrenchment exercise conducted by DBS Bank. Unions should be informed and consulted beforehand.

I have read the next scheduled pay raise exercise for Singapore's so-called elite ministers is coming soon. Announcement is expected to be made near the coming 22 Jan 2009 Budget. I hope the Singapore government can be sensitive enough to scrap this coming pay raise exercise. Many ministers are already millionaires by their current payroll.

To wrap up my view, I shall quote a joke read from a discussion thread on why Temasek Holdings volunteered for a pay cut. Some of the words used are in Hokkein dialect. Enjoy!

Son: daddy, 2masay is very the chiak lat now so how ah? my taling ah ching everyday dunno wat 2explain to the peeper all cow peh cow bu now.

Dad: ah leng kia, dun werely, lim peh ka lee kong, ask ah ching quick-kerlee announce for 15% cow koo lee kang, so stupid peeper will think we oso have heart wat . .

Son: but but like tat, my taling sure tulang one and later give me more pressure then I oso chiak lat wat...

Dad: huh! you really a gong leng, later I will give green light to increase your pay up 15% then you take part of your salary and give back to her lah, bodoh! wats the difference? LP=PL wat!

Son: oh ya hor! how come my lau peh so clever one . . hehe!