CEO Piyush Gupta suffers 27% pay cut due to DBS's disruptions, receives $11.2m

SINGAPORE —  DBS Bank chief executive officer Piyush Gupta was paid $11.2 million in 2023, the bank said in its annual report out on March 6, a drop of 27 per cent from the $15.4 million he brought home in 2022.

This follows the bank's announcement in February that the 2023 variable compensation for its CEO and other members of the group management committee has been cut to hold them accountable for the series of digital disruptions in 2023.

DBS said in the report: "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."

This cut was taken despite record 2023 profits and outperformance in many areas, it added. In 2023, the bank had a record year, with total income crossing the $20 billion mark for the first time. Net profit reached $10.3 billion and return on equity hit 18 per cent, which marked new highs.

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

The remuneration is based on a scorecard that comprises 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.

Gupta was not alone in receiving a pay cut.

The total variable pay for senior management including the CEO was reduced by 21 per cent to reflect senior management's accountability for the digital disruptions, DBS said in the report.

Senior management's aggregate total compensation — excluding that of the CEO — was lowered to $63.5 million in 2023, from $73.8 million in 2022.

Gupta's base salary, which stood at $1.5 million, remained unchanged, but he received a lower cash bonus of $4.1 million, a drop from the $5.8 million in 2022. His deferred remuneration also dropped to $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.

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This article was first published in The Straits Times. Permission required for reproduction.