Executive remuneration falls in Singapore

Companies based in Singapore should have better balanced executive remuneration structures.

That is according to the professional services firm Ernst & Young, which recommended that the pay practises of the city state island's top executives are realigned to long-term goals.

This advice followed the release of the organisation's senior management salary study in Singapore, which revealed that the number of chief executives working in the country with an annual remuneration of more than $5 million declined by 15 per cent last year.

The study also discovered that the bonuses of chief executives fell in 2008.

However, chief financial officers (CFOs) in the region appear to be earning more since the outbreak of recession - thanks to the importance of the role in difficult economic cycles.

Julia Smith, performance and reward expert at Ernst & Young, explained that executives filling these positions have been the "unsung heroes" of the financial crisis.

She said: "During tough financial times, especially when there is a shortage of cash, the CFO role becomes essential to ensuring business survival."

Earlier this month, Singapore's finance minister Tharman Shanmugaratnam urged executives to enhance their corporate governance procedures.