DBS Bank’s CEO Piyush Gupta, of Indian origin, saw his salary slashed by a significant 27 percent to SGD 11.2 million (approximately Rs 69 crore) last year due to various incidents of technical glitches, as disclosed in the bank’s annual report.
In 2022, Gupta received a salary of SGD 15.4 million.
The bank, headquartered in Singapore, announced in February that the 2023 variable compensation for Gupta and other members of the group management committee has been reduced, holding them responsible for the series of digital disruptions that occurred last year.
“Although the bank performed well across most priorities outlined in its balanced scorecard, it fell short in technology resiliency. This, along with the resulting impact on customers and the franchise, was taken into consideration when assessing the scorecard performance of both the Group and the CEO,” stated The Straits Times, citing the bank’s latest annual report.
Despite the bank’s record profits and excellence in many areas in 2023, this salary reduction was implemented.
DBS Bank achieved a record year in 2023, with total income exceeding SGD 20 billion for the first time. Net profit reached SGD 10.3 billion, and return on equity soared to 18 percent, setting new records.
“The deficiencies in technology resiliency led to a lower scorecard evaluation by the board compared to the previous year,” the bank noted in the remuneration section of its latest report.
Remuneration is determined based on a scorecard that includes key performance indicators such as the bank’s performance against shareholder, customer, and employee metrics, as well as focus areas like the bank’s transformation progress, market expansion, and risk management.
Gupta, who is a naturalized Singaporean, was not the only one to experience a pay cut.
The total variable compensation for senior management, including the CEO, was reduced by 21 percent to reflect management’s accountability for the digital disruptions, as stated in the DBS report.
The aggregate total compensation for senior management, excluding that of the CEO, decreased to SGD 63.5 million in 2023 from SGD 73.8 million in 2022.
While Gupta’s base salary of SGD 1.5 million remained unchanged, he received a lower cash bonus of SGD 4.1 million compared to SGD 5.8 million in 2022. Additionally, his deferred remuneration decreased to SGD 5.6 million.
Approximately 17.4 percent of the deferred award will be in cash, with the remainder in the form of shares, according to the Singaporean daily report.
