Pegging of pay to pay with bonuses??

Today's papers just highlighted one important point about CapitalLand's CEO pay. According to 2007 annual report, Mr Liew earned S$1.15 million in base salary in 2007, and was paid S$5.35 million in bonuses. That means a total of $6.5million for 2007.

Does this number 6.5million look familiar? Yes... It's one of the pay that our top government officials is pegging their pay to.

I think there is seriously something wrong with this pegging formula. I will understand if they peg the pay to their base salaries, but pegging of pay to their base salaries + bonuses??? If our dear government is really good, I won't mind them having a 12 months year end bonus based on their base salaries. However, if Singapore economy is not growing, then why on earth should they still get million dollar salaries. I'm sure Mr Liew will not be earning more than 3million dollars for 2009 if the current climate persist for 2009.

From the post I've written here, their decrease of pay is just a few $100,000. Our top government officials will soon be earning much more than the private sector in 2009! Why? Because they pegged their pay to pay with bonuses, and not to their base salaries! Here we're talking about negative growth for the year 2009. Negative growth and they have a pay of $3million dollars?

I still like to bring out the example of Goldman Sach's CEO. Salary from USD68 million to USD 600,000.

That's a pay cut, and that's true leadership.