The budget set aside for employee salary increases, as well as the funds raised from a voluntary base salary reduction among senior employees, will be donated to T-Touch, Temasek's staff-volunteer initiative. Temasek will also match these funds dollar for dollar.
Singapore state investor Temasek has announced that it will be implementing a salary freeze for all its employees for its April compensation exercise, in light of the Covid-19 outbreak, the firm said in a statement on Tuesday.
The salary reduction exercise is not a result of the firm's investment performance, but is being taken to show solidarity with companies and the community during this period, and for the firm to «exercise restraint and prudence» in view of the coronavirus situation, local newspaper «The Straits Times» reported.
Its senior management will also take a partial cut in their annual bonuses this year, with the funds going towards a contingency fund to support community-related efforts to support those affected by the virus, the statement added.
No End Date
Temasek has previously implemented salary cuts during the 2003 Sars epidemic, and during the 2008 global financial crisis.
It has not set an end date for the current freeze, saying that this will depend on market conditions. Temasek also noted that it does not direct its portfolio companies on compensation-related matters.
.
