Business
Temasek cuts senior management compensation after conclusion of internal review following troubled FTX investment
Singapore’s investment company, Temasek Holdings, has concluded an internal review following its ill-fated US$275 investment in FTX, a cryptocurrency exchange. The firm disclosed it has cut senior management and investment team compensation, holding them accountable for the reputational damage suffered due to the failed FTX investment.
Temasek Holdings, Singapore’s state investment firm, has released a statement taking stern accountability measures after a disastrous investment into the cryptocurrency exchange, FTX, which led to significant financial loss and reputational damage.
On Monday, the firm announced that it had cut the compensation of its senior management and the investment team responsible for the FTX deal.
Temasek Chairman Lim Boon Heng disclosed that an independent team from the company had conducted a thorough internal review of the investment and presented the findings directly to the Board Risk and Sustainability Committee, as well as the board itself.
“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,” he stated.
As part of their learnings from this incident, Temasek highlighted the need to strengthen their approach to reviewing the governance, management, and controls of portfolio companies, especially rapidly growing ones.
This move was triggered by the collapse of FTX in November 2022, following a damning report by CoinDesk about affiliated trading firm, Alameda Research.
Over the span of a few months, from October 2021 to January 2022, Temasek invested a total of US$275 million in FTX across two funding rounds. This investment constituted a mere 0.09 per cent of Temasek’s net portfolio value of S$403 billion as of March 31, 2022, but it made Temasek one of FTX’s largest external investors. The investment firm, which did not have a board seat, held only a 1.5 per cent stake in FTX.
The FTX debacle raised serious questions in Singapore’s Parliament in 2022. Responding to the controversy, Deputy Prime Minister Lawrence Wong emphasised that the loss should not be seen as a failure of Temasek’s governance system. He argued that no amount of due diligence or monitoring can completely eradicate the risks involved in investing. He also disclosed that Temasek had embarked on an internal review conducted by an independent team separate from the investment team.
Mr Lim, in his address to parliament, underscored that “there was fraudulent conduct intentionally hidden from investors, including Temasek,” as alleged by prosecutors and admitted by key executives at FTX and its affiliates. Even though there was no misconduct on the part of the investment team, they and the senior management accepted collective responsibility for the damage inflicted on Temasek’s reputation.
As of now, the exact amount of the compensation reduction has not been disclosed. Neither did Temasek mention how many or who have their compensation reducted.
The firm, led by CEO Dilhan Pillay Sandrasegara, aims to learn from this setback. It plans to enhance its investment evaluation process, with CFO Png Chin Yee stating to local media, “We will use this experience to further strengthen our approach on reviewing the governance, management and controls of a company based on the nature of the business, whether it is an early-stage or mature company. This is especially so if the company is growing rapidly.”
Temasek has declared that it will abstain from investing in cryptocurrencies and will exercise due diligence when considering new investments in the blockchain space. FTX was the only direct investment Temasek had in a digital asset exchange.
Business
WP Engine banned from WordPress.org amid escalating legal fight with Matt Mullenweg
Following Matt Mullenweg’s ban on WP Engine from accessing WordPress.org resources, many WP Engine customers are left vulnerable, as they can no longer access plugin updates or security features. Mullenweg urged users to seek alternative hosts, escalating the legal conflict between the two companies.
In a sharp escalation of tensions, WordPress co-founder and CEO Matt Mullenweg has publicly criticized WP Engine, a popular hosting provider, while also cutting its access to WordPress.org’s resources.
The dispute centres on legal and trademark issues, with Mullenweg accusing WP Engine of both profiteering off WordPress’s open-source platform and damaging its community.
On 25 September, Mullenweg posted a scathing blog on WordPress.org, stating that WP Engine no longer has free access to the platform’s resources and calling for customers to avoid the service.
He also detailed that WP Engine’s recent actions disrupted thousands of websites. “WP Engine broke thousands of customer sites yesterday in their haphazard attempt to block our attempts to inform the wider WordPress community,” Mullenweg claimed.
The conflict appears rooted in WP Engine’s use of WordPress’s open-source platform while allegedly not contributing to its development or upholding community standards.
At the core of the dispute is WP Engine’s practice of locking down a WordPress feature that tracks revision history for posts. According to Mullenweg, this undermines a crucial aspect of WordPress’s promise of data transparency and protection.
WP Engine, in turn, has argued that Mullenweg is trying to coerce them into paying millions to license the WordPress trademark, a claim Mullenweg denies.
The host provider WP Engine has faced harsh criticism for disabling certain features in WordPress core, which, according to Mullenweg, is central to protecting user data.
“WP Engine wants to control your WordPress experience,” Mullenweg wrote, accusing the company of exploiting WordPress’s free services while making billions of dollars in revenue.
WP Engine’s inability to provide security updates and other resources leaves customers vulnerable, Mullenweg suggested, urging users to consider alternative hosting options.
Additionally, Mullenweg argued that WP Engine would need to replicate WordPress’s security infrastructure independently.
He emphasized that WordPress.org has collaborated with hosting providers to address vulnerabilities at the network layer, a service WP Engine can no longer access freely. “Why should WordPress.org provide these services to WP Engine for free, given their attacks on us?” he asked.
The ban leaves WP Engine in a precarious position, as customers who rely on WordPress plugins and themes may face significant difficulties accessing the latest updates.
These restrictions have raised alarms in the community, as outdated plugins are often the target of cyberattacks. Hackers frequently exploit vulnerabilities in WordPress plugins, potentially compromising millions of websites globally.
The dispute between WordPress and WP Engine has been simmering for some time.
Earlier in September, Mullenweg described WP Engine as a “cancer to WordPress” during a speech at the WordCamp US Summit, accusing the company of profiting off the platform without giving back.
In response, WP Engine sent a cease-and-desist letter to Mullenweg and Automattic, claiming that Mullenweg’s comments were an attempt to extort the company into paying for a trademark license.
WP Engine’s legal team also accused Mullenweg of threatening a “scorched earth nuclear approach” if they refused to comply with his demands.
The cease-and-desist letter was swiftly countered by Automattic, WordPress’s parent company, which asserted that WP Engine had violated WordPress and WooCommerce trademark policies.
The updated trademark policy on WordPress.org explicitly cautions users against assuming WP Engine is affiliated with WordPress. “Many people think WP Engine is ‘WordPress Engine’ and officially associated with WordPress, which it’s not,” the updated guidelines explain.
The legal dispute has thrown both companies and their customers into uncertainty.
While WordPress operates under a GPL (General Public License), which makes the software free for use, hosting providers like WP Engine must offer services beyond the core platform, such as user login systems, update servers, and security monitoring.
Mullenweg’s decision to sever WP Engine’s access to WordPress.org resources has already caused disruption, with many sites reporting functionality issues and concerns about security vulnerabilities.
WP Engine has pushed back against Mullenweg’s actions.
In a public statement, the company accused Mullenweg of abusing his influence over WordPress to disrupt WP Engine customers’ access to WordPress.org, calling the move “unprecedented and unwarranted.”
The company argued that the ban affected not only its users but also developers who rely on WP Engine’s tools to build and maintain WordPress plugins.
As the dispute unfolds, the wider WordPress community is left to grapple with the implications. Developers and hosting providers have expressed concern over the trademark battle, fearing that similar restrictions could extend to them.
The WordPress Foundation, which holds the trademark, has already filed to trademark “Managed WordPress” and “Hosted WordPress,” sparking debate about how this might affect commercial users.
For now, the WordPress ecosystem is in flux as users, developers, and hosting providers wait to see how the legal battle will unfold and whether WP Engine will regain access to critical WordPress.org resources.
Until then, Mullenweg’s message is clear: if you want the true WordPress experience, WP Engine is no longer the place to find it.
Editor’s note: This publication was previously hosted on WP Engine.
Business
DPM Gan Kim Yong appointed to GIC board as director
Deputy Prime Minister Gan Kim Yong will join the GIC board as a director from 1 October, enhancing his extensive portfolio that includes serving as Singapore’s Minister for Trade and Industry and Chairman of the Monetary Authority of Singapore.
SINGAPORE: Deputy Prime Minister (DPM) Gan Kim Yong will join the GIC board as a director starting on 1 October, according to an announcement from the sovereign wealth fund on Tuesday (24 September).
Mr Gan is also Singapore’s Minister for Trade and Industry.
His appointment adds to his extensive portfolio, which already includes his responsibilities as the Chairman of the Monetary Authority of Singapore (MAS) and his role overseeing the Strategy Group in the Prime Minister’s Office.
He is also a member of key national boards such as the Research, Innovation, and Enterprise Council and the National Research Foundation Board.
In a statement, Lim Chow Kiat, Chief Executive of GIC, welcomed Gan’s appointment, stating, “His wide-ranging experience will add valuable insights to important asset allocation and other strategic decisions.”
Lim expressed optimism about the contributions Gan will make to the board in shaping GIC’s investment strategies.
Gan’s career began in Singapore’s Civil Service, where he worked in the Ministry of Trade and Industry and the Ministry of Home Affairs.
In 1989, he transitioned to the private sector, joining NatSteel, a company that produces reinforcement steel products for the construction industry.
During his time at NatSteel, Gan rose to the position of Chief Executive Officer and President in 2005. His leadership at the company spanned several years, during which he contributed significantly to its development.
In addition to his corporate experience, Gan has had a distinguished political career.
He entered politics in 2001 and has since held various ministerial roles, including positions in the Ministry of Education, the Ministry of Manpower, and the Ministry of Health.
His leadership in these ministries contributed to Singapore’s policy development in areas ranging from workforce management to public health.
Gan holds both Bachelor’s and Master’s degrees in Engineering from Cambridge University.
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