Remuneration Disclosure for Statutory Boards and Government‑linked Firms
Written Reply to Parliamentary Question on Remuneration Disclosure for Statutory Boards and Government-linked Firms
Parliamentary Sitting: 3 Oct 2022
Mr Chua Kheng Wee Louis: To ask 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.
Written Reply by Mr Chan Chun Sing, Minister for Education and Minister-in-charge of the Public Service.
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.
2 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.
3 Board Directors who serve on Statutory Boards receive an annual allowance commensurate with the size and complexity of the organization. The allowance quanta are centrally determined by the Public Service Division.
4 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.
5 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.
6 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.