DBS Bank’s Indian-origin CEO Piyush Gupta’s salary last year was slashed by 27% to S$11.2 million (approximately Rs. 690 million) due to various incidents of technical glitches. ), the bank said in its annual report.
In 2022, Mr. Gupta received a salary of S$15.4 million.
In February, the Singapore-based bank announced it would reduce the variable remuneration of its CEO and other members of its group management committee in 2023 to take responsibility for the series of digital disruptions that occurred last year.
“Although the bank successfully addressed most Balanced Scorecard priorities, technology resilience was not sufficient. and the resulting impact on customers and franchises,” The Straits Times quoted from the bank’s latest annual report.
It added that the pay cuts were made despite the bank’s 2023 profits being the highest ever and outperforming in many areas.
In 2023, the bank had a record year with total revenue exceeding the S$20 billion mark for the first time. Net profit reached S$10.3 billion and return on equity reached a record high of 18%.
“The board’s scorecard assessment decreased compared to the previous year due to gaps in technology resiliency,” the bank said in the compensation section of its latest report.
Compensation is based on a score comprised of key performance indicators such as the bank’s performance against shareholder, customer and employee metrics, as well as areas of focus such as the bank’s transformation progress, increasing overall market growth and managing risk. Based on cards.
Mr. Gupta, a naturalized Singaporean, is not the only one to have taken a pay cut.
DBS said in a report that total variable pay for senior executives, including the CEO, was reduced by 21% to reflect management accountability for digital disruption.
Total remuneration for senior executives, excluding the CEO, has been reduced from S$73.8 million in 2022 to S$63.5 million in 2023.
Mr. Gupta’s base salary remained unchanged at S$1.5 million, but his cash bonus was reduced to S$4.1 million from S$5.8 million in 2022. His deferred compensation has also been reduced to S$5.6 million.
About 17.4% of the deferred compensation will be paid in cash and the rest in the form of shares, Singapore Daily reported.