Even though DBS, the largest bank in Singapore, posted a record profit, it reduced the bonus of its CEO by 30% due to disruptions in its digital services.
According to the firm, Piyush Gupta’s variable pay will be reduced by S$4.14 million ($3.1 million; £2.4 million), and his entire 2023 remuneration will be revealed in March.
Mr. Gupta received S$15.4 million in 2022. The nation’s central bank prohibited DBS from acquiring new companies or making non-essential IT upgrades for six months last year following a number of mishaps. Due to the disruptions, cash machines and digital payment systems went offline throughout the city-state.
The bank announced that more junior staff will receive a one-time incentive to assist them with rising living expenses. At the same time, other members of its management team will see a 21% reduction in their variable pay.
Deferred shares and a cash incentive comprise DBS’s variable pay. It typically depends on an employee’s performance and is paid on top of base pay.
Senior DBS executives’ salaries are being slashed even if the bank reports record-breaking year profits, with its net profit for 2023 rising by 26% to S$10.3 billion.
Like many other banks across the globe, DBS has profited from rising interest rates due to central banks maintaining high borrowing costs to slow down price increases.