In light of the reputational damage incurred by Singapore's investment company, Temasek has announced a reduction in compensation for its senior management and the investment team responsible for the unsuccessful investment in FTX, demonstrating their willingness to accept accountability.
The Business Times reported that Temasek chairman Lim Boon Heng made a statement on Monday, disclosing the information. “An independent team has conducted an internal review of the investment and the findings were directly presented to the Board Risk and Sustainability Committee, and to our board,” he said.
“Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team, and senior management, who are ultimately responsible for investment decisions made, took collective accountability and had their compensation reduced.” Lim Boon Heng further added.
Temasek further emphasised that it has gained valuable insights from this incident, notably in enhancing its approach to reviewing the governance, management, and controls of portfolio companies, particularly those experiencing rapid growth.
In November 2022, FTX, once considered a high-performing company under the leadership of founder Sam Bankman-Fried, experienced a significant downfall following a damaging report by CoinDesk. The report implicated trading firm Alameda Research, which had affiliations with FTX.