DBS Bank Slashed CEO Piyush Gupta's Salary By 27% In 2023

The Singapore-headquartered bank had previously announced in February that the 2023 variable compensation for Gupta and other members of the group management committee had been reduced

DBS Bank disclosed in its annual report that the salary of its Indian-origin Chief Executive Officer, Piyush Gupta, was reduced by a significant 27 per cent to 11.2 million Singapore Dollars(approximately Rs 69 crore) last year due to various technical glitches. This marked a decrease from the 15.4 million Singapore Dollars he received in 2022. The 

The Singapore-headquartered bank had previously announced in February that the 2023 variable compensation for Gupta and other members of the group management committee had been reduced, attributing accountability to them for the digital disruptions experienced throughout the previous year.

"While the bank fared well against most priorities on its balanced scorecard, it fell short in technology resiliency. This and the resultant impact on customers and the franchise were taken into account when determining the scorecard performance of both the Group and the CEO," reported The Straits Times, quoting the bank's latest annual report.

Despite achieving record profits and excelling in numerous areas, the bank implemented the pay cut. In 2023, the bank experienced a milestone year, surpassing the 20 Billion Singapore Dollars total income threshold for the first time. Net profit soared to 10.3 Billion Singapore Dollars, while return on equity reached a remarkable 18 per cent, setting new records.

"The gaps in technology resiliency resulted in a lower scorecard appraisal by the board compared to the previous year," said the bank in its remuneration segment of the latest report.

Remuneration is determined by a scorecard comprising key performance indicators, encompassing shareholder, customer, and employee metrics alongside strategic focuses like bank transformation, market expansion, and risk management, as outlined in DBS's report.

Piyush Gupta was not the sole recipient of a salary reduction. DBS reported a 21 per cent decrease in total variable compensation for senior management, including the CEO, reflecting management's responsibility for digital disruptions.

In 2023, senior management's collective compensation, excluding the CEO's, decreased to 63.5 million Singapore Dollars from 73.8 million Singapore Dollars in 2022.

While Gupta's base salary remained steady at 1.5 Million Singapore Dollars, his cash bonus decreased to 4.1 Million Singapore Dollars from 5.8 Million Singapore Dollars in 2022. Additionally, his deferred remuneration fell to 5.6 Million Singapore Dollars. Approximately 17.4 per cent of the deferred award will be provided in cash, with the remainder in shares, according to a report from the Singapore Daily.