DBS Bank cut 27% salary of CEO Piyush Gupta for various ‘tech glitches’; paid him Rs 69 cr

0 21

Singapore-based lender DBS Bank, in its annual report, revealed that it cut 27 per cent salary of its CEO Piyush Gupta last year for various incidents of technical glitches. The Indian-origin but naturalised Singaporean CEO still received SGD 11.2 million (about Rs 69 crore). The year before, in 2022, he had received SGD 15.4 million (about Rs 95 crore). 

The lender said that the 2023 variable compensation for its CEO and other members of the group management committee was cut as DBS held them accountable for a series of digital disruptions. 

Gupta’s base salary of SGD 1.5 million remain unchanged but he received a lower cash bonus of SGD 4.1 million, compared to SGD 5.8 million in 2022. His deferred remuneration also dropped to SGD 5.6 million. Of the deferred award, about 17.4 per cent will be in cash, while the remaining will be in the form of shares.

The annual report, as quoted by The Straits Times, added that the bank fared well against most priorities but 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,” the annual report stated. 

The pay cut came even as the bank recorded profits and outperformed in many areas in 2023. 

“The gaps in technology resiliency resulted in a lower scorecard appraisal by the board compared to the previous year,” the bank said. The remuneration is based on a series of aspects, including key performance indicators like how the bank fares against shareholder, customer and employee indicators, as well as focus areas such as progress in transforming the bank, scaling growth across markets and managing risks. 

The senior management, including CEO Gupta, had to take a cut in variable wages by 21 per cent to reflect the accountability, DBS stated. The senior management’s aggregate total compensation — excluding that of the CEO — was lowered to SGD 63.5 million in 2023 from SGD 73.8 million in 2022.

Source link

Leave A Reply

Your email address will not be published.