KUALA LUMPUR: Singapore’s Temasek Holdings (Private) Ltd said on July 21 that Charles (Chip) W. Goodyear would not proceed with his CEO appointment, over “differences regarding certain strategic issues that could not be resolved”.

In a statement posted on its website, Temasek said Goodyear was appointed a member of the board on Feb 1 and CEO-designate on March 1. He was to succeed Ho Ching as CEO on Oct 1.

“Four months into the leadership transition, the Temasek Board and Goodyear have concluded and accepted that there are differences regarding certain strategic issues that could not be resolved.

“In light of the differences, both parties decided that it is in their mutual interests to terminate the leadership transition process and hence the executive relationship with effect from Aug 15,  2009. Goodyear will also step down from the Temasek Board effective the same date,” said the Temasek statement.

Temasek manages a portfolio with a net value of about S$185 billion or US$134 billion, weighted towards Singapore and Asia. Goodyear was the former CEO of BHP Billiton and was ready to take over from Ho on Oct 1 as the sovereign wealth fund's first foreign CEO.

According to Reuters, with 40% of its holdings in financials, the market meltdown last year saw Temasek's portfolio lose nearly a third in the eight months to November, sparking unprecedented criticism in Singapore about its strategy. The size of its portfolio shrank to $84 billion as of Nov. 30.

Reuters also said the decision came after analysts said Goodyear could overhaul the firm's investment strategy after Temasek lost more than US$4 billion this year after dumping stakes in Bank of America and Barclays.

Meanwhile, the statement quoted Temasek Holdings chairman S. Dhanabalan as saying that it was with much regret that both Goodyear and the board had accepted that it is best not to proceed with the leadership transition.

Goodyear said: "I'm sorry that we are unable to continue with the leadership transition. Temasek has a fantastic platform and I wish the Board, Ho Ching and the team all the best."

Ho Ching, in the same statement, said in the short time with Temasek, Chip had started a number of initiatives which she believed would help strengthen the Temasek platform.

“I am sorry he is unable to continue with the leadership transition, and hope to complete the initiatives that he has started," she said.