Most CEOs back benchmarking top govt officials' pay: survey

Most CEOs back benchmarking top govt officials' pay: survey
Only 3 of 21 chief execs in BT poll feel benchmarking is wrong and unfair


By CHUANG PECK MING

THEY are clearly the majority. All but three of 21 chief executives BT quizzed in a straw poll support benchmarking the pay of top government officials against top private sector earnings - although some would like it done differently.


Mr Pande: Such benchmarking has clearly brought in talent to the public sector
The three CEOs against benchmarking feel it is wrong and unfair. The roles of public officials are not comparable to those of private sector employees, they believe. There are greater risks in the private sector - including the sack if you are not up to the job.

'Ministers are not subject to the same kind of open scrutiny for performance,' said Biomedica Ventures managing director Lim Wu Shan. 'They do not share the same risk and pressure of being fired or forced to resign from the job in case they do not perform.'

The way he sees things, a top government official serves the nation and should be reasonably compensated: 'It comes with prestige and respect and other intangible benefits that are difficult to quantify in terms of dollars.'

BT's poll was taken after a salary revision - the first in seven years - that will result in the pay of top government officials rising 14 to 33 per cent, with ministers getting an increase of 25 per cent on average. The pay rates are pegged to those of top earners in the private sector.

Most of the CEOs in the BT poll reckon this is the way to go to attract and retain the best and brightest.

'Such benchmarking has clearly brought in talent to the public sector and the achievements of this talent pool are plain to see,' said Girija Pande, executive vice-president and head for Asia-Pacific, Tata Consultancy Services.

'The Singapore growth story is nothing short of a miracle and the ability to harness and retain talent - in the face of more attractive alternatives to such people - is noteworthy.'

According to him, benchmarking is 'innovative, forward-looking and . . . other states may choose to follow some day'.

NETS chief executive Poh Mui Hoon feels the public sector plays just as important a role as the private sector in Singapore's prosperity: 'It is, therefore, reasonable that the pay of ministers and civil servants should be benchmarked to their private sector counterparts, taking into account the impact of their decisions and the value of their contributions to the nation.'

Harish Nim, chief executive of Emerio Corporation, said benchmarking to private sector top earnings makes a lot of sense: 'After all, the kind of forward planning and thinking that goes into governing a country cannot come by chance. It needs the best brains and the best managerial talent that money can buy.'

Mr Nim is impressed with the way the government runs the country: 'Everything works well, the planning, the infrastructure, the law and order as well as the various government ministries and departments that I interact with.'

Palani Pillai, managing director of Crush Advertising, said: 'Memories may be fleeting but Singaporeans should look back at the Sars crisis, the multiple recessions we've encountered and reflect on how our leaders managed to steady the ship and keep Singapore moving forward without great damage to the livelihood of Singaporeans.'

In an uncertain world, 'the one thing that should be predictable is the fact that we have leaders who can help us weather any storm that come our way'.

According to Mr Pillai, pay rises for top government officials should be looked at as an investment, not an expense: 'If we lose our leaders because we are not willing to pay them their just rewards then I think we are depriving ourselves and the country of a better tomorrow.' He finds the current benchmarking 'quite conservative'.

Others, like Peter Rigbye of PASR Technologies and Derek Goh of Serial System, reckon the benchmarking should factor in 'intangibles' - the post-retirement perks - inflation and the pay of other governments.

'While benchmarking to the private sector should be a significant input, so should other inputs like (salary) packages from other government structures in other countries, the Singapore cost of living and inflation,' said Mr Rigbye.

Sam Yap, executive chairman of Cherie Hearts Group, said benchmarking is 'certainly fair' but should take into account ministers' success in meeting their key performance indicators.'

According to Mr Pillai of Crush Advertising, the benchmarking which pegs ministers' pay to two-thirds of the top earners in the private sector 'is in fact quite conservative'.

'If we want the best to lead our nation, then we should be paying them not two-thirds but on par with the top earners,' he said.

Joey Chang, CEO and founder of AXS Infocomm, said benchmarking is 'quite systematic' and the pay adjustments for ministers 'rather fair'. But he is 'a bit concerned' about the pay rise given to middle and higher-level civil servants.

'For example, the starting range for a Superscale seems bit too generous,' he said. 'And most of these candidates are still relatively untested.'