The Temasek investment professionals and senior management responsible for the FTX investment took a pay cut.

Incorporated in 1974, Temasek is an investment company headquartered in Singapore. Supported by 12 offices globally, Temasek owns a S$403 billion (US$297 billion) portfolio as at 31 March 2022, mainly in Singapore and the rest of Asia. On Monday, Temasek’s Chairman issued a statement on the fund’s investment in FTX, the bankrupt crypto exchange led by Sam Bankman-Fried, acknowledging that the investment team responsible for the FTX investment as well as senior management had accepted a cut in their compensation.

The fund wrote down $275 million on the FTX investment.

The Temasek Chairman’s statement read as follows:

“Temasek, as an investor-owner, strives to generate sustainable long-term returns. While investing always carries inherent risks, we recognize the importance of investing in emerging sectors and technologies to comprehend their potential impact on our existing portfolio’s business and financial models, as well as their potential as future value drivers in a constantly evolving world. Hence, we choose to invest in early-stage companies.

Regarding FTX, it has been acknowledged by key executives and prosecutors that fraudulent behavior was deliberately concealed from investors, including Temasek. Despite this, we are disappointed by the outcome of our investment and the negative effect it has had on our reputation.

An independent team has conducted an internal review of the investment, and their findings were presented directly to the Board Risk & Sustainability Committee and our Board. While the investment team acted with integrity in making their investment recommendation, collective responsibility was taken by the investment team and senior management, who ultimately hold accountability for investment decisions, resulting in a reduction in their compensation.”

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