Piyush Gupta, CEO, DBS Bank, experienced a substantial 27 per cent reduction in salary to SGD 11.2 million (approximately Rs 69 crore) last year. The cut has been attributed to various technical glitches, as stated in the bank’s annual report.
While Gupta’s base salary remained at SGD 1.5 million, his cash bonus decreased to SGD 4.1 million from SGD 5.8 million in 2022. His deferred remuneration also dropped to SGD 5.6 million, with 17.4 per cent of the deferred award in cash and the remainder in the form of shares, as reported by the Singapore daily.
In 2022, Gupta had received a salary of SGD 15.4 million. The Singapore-based bank, in February, announced a cut in the 2023 variable compensation for the CEO and other members of the management committee due to accountability for digital disruptions in the previous year.
Despite the bank achieving record profits in 2023 and excelling in various aspects, the pay cut was implemented. The bank reported a historic year with total income surpassing SGD 20 billion, net profit reaching SGD 10.3 billion, and a return on equity of 18 per cent, all marking new highs.
The annual report highlighted that deficiencies in technology resilience affected the scorecard appraisal, leading to the pay cut. The evaluation is based on key performance indicators, including shareholder, customer and employee metrics, as well as progress in transforming the bank, scaling growth across markets, and managing risks.
However, Gupta, was not the sole recipient of a pay cut. The total variable wages for senior management, including the CEO, were reduced by 21 per cent, reflecting accountability for digital disruptions, according to DBS. Senior management’s aggregate total compensation, excluding the CEO, decreased to SGD 63.5 million in 2023 from SGD 73.8 million in 2022.
