AMID the challenging situation resulting from the Covid-19 disease outbreak, Singapore state investment firm Temasek is implementing a firm-wide wage freeze and asking senior management to take a voluntary pay cut for up to a year.
In its compensation exercise this April, Temasek will freeze all salaries and promotion increases, and partially cut annual bonuses for the senior management team this year. It has also asked senior management to voluntarily reduce their base salaries by up to 5 per cent.
Temasek said that the budget originally set aside for the salary and promotion increases will be donated to its staff volunteer initiative T-Touch and set aside to support the community as needed during this time. The voluntary base salary reduction from senior management will be matched dollar-for-dollar by Temasek and donated to the same initiative.
Temasek has implemented wage freezes at other times in the past, such as during the Sars outbreak in 2003 and the global financial crisis in 2008. The Business Times understands that the investment firm does so in order to exercise restraint and prudence as a responsible portfolio owner in challenging times, but does not dictate whether its portfolio companies are to follow suit with wage freezes of their own.