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Open Letter to Gerard Ee: Re: Review of Minister’s salary
Dear Mr. Ee,
Congratulations on your appointment to the chairmanship of the Minister salary review committee. However, you will pardon my sceptism as to the role that your committee will actually play towards lowering minister’s salaries. The purview given your committee is so restricted in scope that I am surprised that you would take this post knowing that your hands are tied behind your back in your effort to produce a credible recommendation. Many questions are unclear to me and other Singaporeans, and I would like to take this opportunity to present them, and for you to clarify them if you are so inclined.
1)Are the recommendations of your committee binding or non-binding? Do you actually have enforcement powers given your committee to see that these pay changes are actually carried out? Or has PM Lee simply given you his word he will abide by your ruling?
2)Why only review the Minister’s salaries? Why not their total compensation package including their bonus formula, their pension plans, the fees they earn sitting on the boards of various GLCs, NGOs, Stat Boards, and other income etc.? It doesn’t make sense to anyone to review only one aspect only (albeit a large one) of the total minister’s compensation.
3)Why not include in this review the President’s salary too, and also that of the MPs? If your aim to disquiet the public’s abhorrence of the high salary that politicians earn, than surely, MPs, the President, Perm Secs. Etc, should also have their salaries reviewed. After all PM Lee has gone on record to officially say that NOTHING IS SACROSANT in your review.
4)It seems You are still intend on comparing minister’s pay to the private sector, what they would have commanded for their skills in the private sector, and add a reference component such as the general wage level. Why? Which country does this, other than Singapore? How do you determine an equivalent private sector wage for someone like Minister Chan CC? He is a career military officer with no experience in the private sector, and indeed, if he had entered the private sector, I doubt he would have earned more than $4000 per month. In other countries, ex-high ranking military staff are employed as lobbyist and executives for arms manufacturers chasing after govt. contracts. In Singapore, we only have one arms manufacturer, owned by the govt. and they have no need for lobbyists. Therefore, I doubt BG Chan (Retd), would have been employed by anyone in the private sector at anywhere near what his is earning now given his lack of experience in the private sector, his age, and his dubious management qualities. Is it not better to simply say that most world leaders have a salary between USD $400K-$500K, and take it from there?
5)Are there not already many international firms and NGOs with extensive HR experiences and who specialize in head hunting executive throughout the world? Why not hire one of them to independently come to a wage scheme for the ministers and use their recommendation instead of forming this committee. No matter how much you cut salaries, I suspect that it will not be enough for many people, and there will still be controversy after the results are out. An independent firm might deflect much of the criticism.
6)Can you reveal to us exactly what is the budget for your committee? How are you and the other 7 members of the committee being compensated or are you all doing pro bono work?
7)I noticed that PM Lee jumped the gun and announced that the salaries recommendation will start on May 21st. Have you given any thoughts to retroactively enforcing them? After all, the ministers were collecting their exorbitant salaries for many years. In order give your committee any credibility at all, you should insist on making your recommendations retroactive to PM Lee.
8) If your intention is to break down a minister's job and ascertain what an equivalent private sector person would do and earn for this job, than should you not also consider that a private sector individual is beholden to his board of directors, shareholders, company owners, etc.? In other words, there is no such thing as a job security for anyone in the private sector. The private sector is rife with the firings of underperforming executives, and executives who have lost money for their companies. Ministers on the other hand are guaranteed a job for at least 5 years. Regardless of whether the economy is good or bad. How do you account for this "Iron Rice Bowl" effect? In truth, the only way to compensate for this job security would be to drastically lower their salaries. Or will you conveniently not take this into account at all?
9) There is a perception that your committee is made up of establishment types, people who have benefitted from the PAP's policies. Why was there no effort made to include other people with different viewpoints, perhaps people like Chiam See Tong, Tan Jee Say, Tan Kin Lian, etc.
I am sure you will do what many Singaporeans expect you to do, however, if you care to elaborate on any of the above points, that would be greatly appreciated by 3.7 million native born Singaporeans
Sincerely yours,
P.Smrer.
Dear Mr. Ee,
Congratulations on your appointment to the chairmanship of the Minister salary review committee. However, you will pardon my sceptism as to the role that your committee will actually play towards lowering minister’s salaries. The purview given your committee is so restricted in scope that I am surprised that you would take this post knowing that your hands are tied behind your back in your effort to produce a credible recommendation. Many questions are unclear to me and other Singaporeans, and I would like to take this opportunity to present them, and for you to clarify them if you are so inclined.
1)Are the recommendations of your committee binding or non-binding? Do you actually have enforcement powers given your committee to see that these pay changes are actually carried out? Or has PM Lee simply given you his word he will abide by your ruling?
2)Why only review the Minister’s salaries? Why not their total compensation package including their bonus formula, their pension plans, the fees they earn sitting on the boards of various GLCs, NGOs, Stat Boards, and other income etc.? It doesn’t make sense to anyone to review only one aspect only (albeit a large one) of the total minister’s compensation.
3)Why not include in this review the President’s salary too, and also that of the MPs? If your aim to disquiet the public’s abhorrence of the high salary that politicians earn, than surely, MPs, the President, Perm Secs. Etc, should also have their salaries reviewed. After all PM Lee has gone on record to officially say that NOTHING IS SACROSANT in your review.
4)It seems You are still intend on comparing minister’s pay to the private sector, what they would have commanded for their skills in the private sector, and add a reference component such as the general wage level. Why? Which country does this, other than Singapore? How do you determine an equivalent private sector wage for someone like Minister Chan CC? He is a career military officer with no experience in the private sector, and indeed, if he had entered the private sector, I doubt he would have earned more than $4000 per month. In other countries, ex-high ranking military staff are employed as lobbyist and executives for arms manufacturers chasing after govt. contracts. In Singapore, we only have one arms manufacturer, owned by the govt. and they have no need for lobbyists. Therefore, I doubt BG Chan (Retd), would have been employed by anyone in the private sector at anywhere near what his is earning now given his lack of experience in the private sector, his age, and his dubious management qualities. Is it not better to simply say that most world leaders have a salary between USD $400K-$500K, and take it from there?
5)Are there not already many international firms and NGOs with extensive HR experiences and who specialize in head hunting executive throughout the world? Why not hire one of them to independently come to a wage scheme for the ministers and use their recommendation instead of forming this committee. No matter how much you cut salaries, I suspect that it will not be enough for many people, and there will still be controversy after the results are out. An independent firm might deflect much of the criticism.
6)Can you reveal to us exactly what is the budget for your committee? How are you and the other 7 members of the committee being compensated or are you all doing pro bono work?
7)I noticed that PM Lee jumped the gun and announced that the salaries recommendation will start on May 21st. Have you given any thoughts to retroactively enforcing them? After all, the ministers were collecting their exorbitant salaries for many years. In order give your committee any credibility at all, you should insist on making your recommendations retroactive to PM Lee.
8) If your intention is to break down a minister's job and ascertain what an equivalent private sector person would do and earn for this job, than should you not also consider that a private sector individual is beholden to his board of directors, shareholders, company owners, etc.? In other words, there is no such thing as a job security for anyone in the private sector. The private sector is rife with the firings of underperforming executives, and executives who have lost money for their companies. Ministers on the other hand are guaranteed a job for at least 5 years. Regardless of whether the economy is good or bad. How do you account for this "Iron Rice Bowl" effect? In truth, the only way to compensate for this job security would be to drastically lower their salaries. Or will you conveniently not take this into account at all?
9) There is a perception that your committee is made up of establishment types, people who have benefitted from the PAP's policies. Why was there no effort made to include other people with different viewpoints, perhaps people like Chiam See Tong, Tan Jee Say, Tan Kin Lian, etc.
I am sure you will do what many Singaporeans expect you to do, however, if you care to elaborate on any of the above points, that would be greatly appreciated by 3.7 million native born Singaporeans
Sincerely yours,
P.Smrer.
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