Singapore's Biggest Bank DBS Cuts Ceo’s Variable Pay by 30% Due to Multiple Digital Service Disruptions

By Trisha Andrada

Feb 07, 2024 09:27 AM EST

DBS, the largest bank in Singapore, reported record earnings for the year 2023 but cut the variable pay of its CEO and other top executives to "hold them accountable" for several disruptions in its digital services. 

According to CNBC, DBS CEO Piyush Gupta reportedly received a larger cut, slashing his variable compensation by 30%, which is equal to 4.14 million Singapore dollars ($3.08 million). 

However, BBC reported that Gupta's complete income for 2023 will be revealed in March. Gupta was paid SG$15.4 million in 2022.

Piyush Gupta
(Photo : ROSLAN RAHMAN / AFP via Getty Images)
Piyush Gupta, the new Chief Executive Officer (CEO) for Development Bank of Singapore (DBS) attends a press conference in Singapore on February 5, 2010.

Digital Disruptions in DBS Bank

Following a number of digital service disruptions last year, Singapore's central bank imposed a six-month embargo on DBS's ability to acquire new firms or make non-essential technological modifications.

Due to the interruptions, all of the city-state's digital payment systems and ATMs were down. The bank then issued an apology and stated its intention to make its systems more resilient.

According to a recent statement on the website, members of the bank's executive team will see a 21% reduction in their variable pay, while more lower-level staff will get a one-off bonus to help them with higher living costs.

DBS' variable pay, which is made up of cash bonuses and deferred shares, comes on top of base compensation and is usually based on a personnel's performance.

READ ALSO: Goldman Sachs, Morgan Stanley 4Q Profits Still Beat Expectations

Financial Success of DBS

Even though DBS had record profitability in 2023, with an annual net profit that increased by 26% to SG$10.3 billion ($7.7 billion), the bank has decided to reduce the salaries of its top executives.

Following the release of the company's fourth quarter and full year 2023 financial results on Wednesday morning, the corporation's stock price rose by 2.7%. 

Gupta has led DBS as its CEO since November 2009. The company's operations in Taiwan, mainland China, and India have all expanded under his tenure as CEO. Its wealth management division has grown to become a significant player in the Asian market.

READ MORE: China Moves to Strengthen Chinese Yuan as Stock Markets Plunge: Report

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