Published March 11, 2009

MM Lee clarifies remarks on Temasek

By SIOW LI SEN
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(SINGAPORE) Minister Mentor Lee Kuan Yew has amended his earlier assertion that Temasek Holdings did not have anyone from within to fill the chief executive's job.

Last week, MM Lee, at a Thomson Reuters event, commenting on Temasek's appointment of Charles Goodyear to be its next CEO, said 'there was nobody inside Temasek equal to the job'.

A statement from MM Lee yesterday said, 'Temasek has since corrected me. This was not the case.'

MM Lee said Temasek stated that it updates its CEO succession options yearly.

'Their list includes Singaporeans as well as non-Singaporeans, both inside and outside of Temasek, categorised for various time frames from immediate to a three to five year horizon,' he said.

Temasek selects new CEOs who have the experience and energy to lead the firm for a good five to ten years, said MM Lee.

External candidates considered by Temasek include experienced businessmen who would be in their 40s to early 50s, he said.

Internally, it has several potential CEO candidates, mostly between late-30s and mid-40s, he said.



'Some have better investment nous than some of the external candidates. They are capable and can be considered for the CEO job at various time frames.'

MM Lee said Temasek's board picked Mr Goodyear, the former chief executive of Australia's BHP Billiton, the world's biggest mining company, based on merit.

'A key consideration was his affinity for Temasek's values and its position as a long-term investor, committed to delivering sustainable returns,' said MM Lee.

Last month, S Dhanabalan, Temasek chairman, said that the board began addressing succession planning in early 2005 on an annual basis and first identified Mr Goodyear in 2007.

The board looked at 'external and internal candidates, as well as Singaporeans and non-Singaporeans, over various time horizons', Mr Dhanabalan revealed. He added that while Temasek is Singapore-owned and based, 'our area of operation is the globe'.

Ho Ching, the current CEO, steps down from Temasek on Oct 1.