American who headed mining giant taking over in a planned succession
By
Ignatius Low, Money Editor
Ms Ho Ching with Mr Charles W. Goodyear, who will be named Temasek Holdings' CEO-designate next month and take over after a seven-month transition period. -- ST PHOTO: JOYCE FANG
AFTER more than six years at the helm of Temasek Holdings, Ms Ho Ching is stepping down as chief executive officer.
Mr Charles W. Goodyear, 51, an American, will be appointed CEO-designate on March 1 and take over officially on Oct 1, after a seven-month transition period.
MR CHARLES 'Chip' Goodyear has been described in media reports as an early riser and a fitness buff, up most days at 4.30am to cycle to work, besides being an avid jogger.
Clean-cut, impeccably groomed and possessing boyish good looks, he has also been said to have a low-key style.
Yesterday's announcement took many by surprise and sparked immediate speculation over the reason for Ms Ho's departure, but Temasek chairman S. Dhanabalan said the change had been in the works for some time.
At a media conference yesterday, he revealed that the investment company had been mulling over the succession question every year since early 2005.
Then, in 2007, it found its man in 'Chip' Goodyear.
'The availability of a very qualified and suitable candidate triggered the board and Ho Ching to consider a change of leadership in Temasek,' Mr Dhanabalan said. 'Since then, Ho Ching and the board have been engaged in due diligence and in trying to attract Chip as Ho Ching's successor.'
Temasek, which managed $185 billion in assets as at the end of March last year, has seen the value of its investments fall in tandem with global markets.
It is staring at paper losses running into the billions, having taken major stakes in international banks like Barclays and Merrill Lynch.
But Mr Dhanabalan dismissed talk that the losses, as well as those from the company's investments in Thailand's Shin Corp, were the reason for Ms Ho's leaving.
'Absolutely not...It has got nothing to do with performance,' he said.
It was also too early to say if some of those were indeed losses, he added, as Temasek took a long-term view on its investments.
Taking questions from Singapore and foreign journalists, he also brushed aside the suggestion that Ms Ho's exit had anything to do with her being the wife of Prime Minister Lee Hsien Loong.
'This has been a point that I dealt with on the day that we appointed Ho Ching as the CEO and I think I addressed it quite comprehensively,' he said. 'I was very instrumental in bringing in Ho Ching. That was purely on the basis of merit and not her relationship with anyone.'
Paying tribute to Ms Ho, he said she had transformed the company and built up a good team. 'We will miss Ho Ching,' he added.
The incoming CEO is no stranger to the sort of mega-deals that Temasek frequently strikes.
Until January last year, Mr Goodyear was CEO of BHP Billiton, the world's largest mining and resources company based in Melbourne and London.
During his nine years there, BHP's market capitalisation grew from US$12 billion (S$18 billion) to about US$200 billion and it became one of the largest companies in the world.
On what he would bring to Temasek, he drew parallels between Temasek's objectives and his past experience.
He started out as an investment banker before playing a financial role in various companies looking at areas like investments and restructuring of companies.
'If you look at the experience of BHP Billiton a little bit harder, you will see we ran very much a portfolio model - applying capital, managing teams, setting objectives, and all of those things apply to the Temasek story,' Mr Goodyear said.
Mr Dhanabalan added that Mr Goodyear shared Temasek's vision and values.
'Chip presents a rare and unusual combination of investment and operational experience that can support the continued transformation of Temasek.'
With his appointment, the top two Temasek posts will be held by foreigners.
New Zealander Simon Israel joined Temasek in July 2005 and, as executive director, is the de facto No. 2. He is now a Singapore permanent resident.
Mr Dhanabalan said their presence reflected Temasek's evolution into an Asian and global company.
'We are a Singapore-based, Singapore-owned institution, but our area of operation is global,' he said. 'So in that sense I think having someone with global experience, long-term views on the payout on investments is a great help.'
Ms Ho, 55, did not reveal her future plans, saying she would decide after October. But she will end her official association with Temasek and will not be on its board.
'There's a Chinese phrase, na de qi fang de xia, that says 'what you can take up, you can put down'. We are not here to recruit somebody who is wet behind the ears,' she said.
'I like to think that whoever is the new CEO will like to have the maximum space without having to say: 'Hmm, you know, is this somebody's pet project?''
She thought it a matter of good governance for a departing CEO 'not to hang around on the board', a principle Mr Dhanabalan said Temasek agreed with fully.
But Ms Ho added with a smile that she has promised Mr Goodyear to be no more than a phone call or an e-mail away.
'I'm there for him,' she said. 'And I will like to see him succeed because it doesn't make sense to bring in a new person and then not have the success.'
