Ho Ching’s TLC

Emiliya Mychasuk & Emiko Terazono
Financial Times

Temasek ruler Ho Ching is sparing in any interest in investing in Europe, with the fund’s most recent public foray in the UK resulting in a loss on a small Barclays stake.

Temasek took an estimated £500m loss, as it reduced a stake of almost 2 per cent early in the year, after first investing in Barclays in mid-2007 when the bank was pitted against RBS in bidding for ABN Amro.

At lunch yesterday at the Singapore Institute of Policy Studies, Ms Ho used the theme of Building a Sustainable Institution. This meant investing in Asia and other emerging markets, with a smaller portion of 20 per cent of the $134bn fund set aside for developed countries.

In the meantime, Temasek is sharing out a “negative bonus pool”. Ms Ho said that a share of what it called “negative Wealth Added” meant a negative bonus pool.

“And so, from CEO to office attendants, all our staff were allocated negative bonuses last year and will be allocated more negative bonuses this year once we have approved our audited financials.”

For senior management, the bulk of incentives were deferred between three to 12 years.

As for a replacement for the erstwhile chief executive-designate Chip Goodyear , the group is going back to its list of “promising leaders” identified internally and also externally in what it calls TLC’s – Temasek Linked Companies – which was how they found Mr Goodyear, she said.


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