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Singapore’s biggest bank DBS cuts CEO bonus by 30 percent
Singapore's biggest bank DBS cuts CEO bonus by 30 percent
DBS will reduce its chief executive's bonus by 30 percent after disruptions to its digital services despite reporting a record profit.
The reduction in Piyush Gupta's variable pay is significant, amounting to S$4.14 million, with his total compensation for 2023 to be revealed in March.
This cut comes in the wake of DBS facing regulatory sanctions from Singapore's central bank.
It imposed a six-month prohibition on the bank's acquisition of new businesses and non-essential IT upgrades.
After multiple service outages, digital payments and ATM services were affected city-wide.
The bank has expressed regret over these service interruptions and has committed to enhancing the resilience of its systems.
Other senior management members will see a 21 percent reduction in their variable compensation.
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It includes a mix of cash bonuses and deferred shares based on performance.
However, the bank has announced a one-off bonus for its more junior staff to mitigate the impact of increased living costs.
DBS has achieved a record annual net profit, climbing 26 percent to S$10.3 billion, benefitting from the global trend of rising interest rates to control inflation.
Piyush Gupta has led DBS since November 2009.
He oversaw major growth in the bank's operations in India, Taiwan, and mainland China, as well as an expansion of its wealth management division, which ranks among Asia's largest.
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