Minister sheds light on selection process behind the key appointment
By LEE U-WEN
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(SINGAPORE) The appointment of Charles Goodyear as the first foreigner to lead Temasek Holdings has sparked plenty of debate since the news was announced last month.
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| Mr Goodyear: Will take the reins from current CEO Ho Ching in October |
And the debate continued in Parliament yesterday, when some MPs wanted more light shed on the decision to name a foreigner chief executive of the Singapore investment firm.
Among their concerns: Is the government not worried that the national interest could be jeopardised by having a foreigner CEO who will have a complete overview of Temasek's strategy and operations?
And much like some foreigners who headed major local companies in Singapore and left after barely two years in charge, what is to stop Mr Goodyear stepping down after a few years to join a rival company?
But Senior Minister of State for Finance Lim Hwee Hua moved to allay such concerns. Mr Goodyear was assessed for more than a year under a strict and delicate selection process before it was decided he was the best person based on merit, she said.
This process included first getting the backing of Cabinet before Temasek's board put its recommendation to President SR Nathan for his approval. Mr Nathan himself then met Mr Goodyear before agreeing to his appointment.
'The board felt that Mr Goodyear's strong track record in managing a global enterprise and his experiencing in running an operating company would complement and add to the depth and capacity of the senior leadership team,' Mrs Lim said.
Mr Goodyear, 51, joined Temasek's board on Feb 1 this year and will take over the reins from current CEO Ho Ching in October. Mr Goodyear, who previously ran mining giant BHP Billiton, was identified by the Temasek board as a possible CEO in early 2007.
Mrs Lim said that it is important for the CEO of Temasek to be aligned with the long-term orientation of the company, regardless of nationality. She also confirmed that Mr Goodyear was a permanent employee of Temasek and not on contract.
Like many others in similar positions, Mr Goodyear will be bound by the Official Secrets Act, and his own employment contract has provisions that make sure he is forbidden from divulging confidential information after he has left the company.
Sharing more details about how Temasek identified potential candidates, Mrs Lim said that a board subcommittee has met annually since 2005 to review possible names - both from within the company and outside.
This 'dynamic list' of people includes Singaporeans, permanent residents and foreigners, who are grouped 'according to the time-line' for possible CEO succession.
Some names are placed into categories for succession over short, medium and longer-term horizons. 'This approach has allowed Temasek to identify excellent future CEO candidates, even in their 30s and nurture them as part of the pipeline for future successors,' Mrs Lim said. 'This is consistent with the long-term perspective that Temasek takes as a professional institution.'
There is also one category of names that can be considered for 'immediate succession' should anything unexpected happen to the incumbent CEO. Currently, the candidates on Temasek's list are mostly in their late 30s or 40s and comprise Singaporeans and foreigners.
Non-constituency MP Sylvia Lim asked why Mr Goodyear was chosen when it is Civil Service practice to restrict access to state secrets to Singaporeans. To which Mrs Lim replied: 'Temasek is not part of the Civil Service or the public sector. It is a commercial sector (enterprise) wholly owned by the Government.'
The government has allowed non-citizens to be exposed to sensitive work and projects so long as they have the necessary expertise and have undergone proper security clearance, she said. 'Temasek engages many foreigners, including at the senior management level. Temasek also has some foreign board members, although the board remains in the effective control of Singaporeans.'
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