DBS chief Piyush Gupta takes $4 million pay cut over digital disruptions

SINGAPORE — The 2023 variable compensation for DBS Group Holdings chief executive officer Piyush Gupta and other members of the lender’s group management committee has been cut to hold them accountable for the series of digital disruptions last year.

Gupta took a deeper cut of 30 per cent, which amounted to $4.14 million, DBS said on Feb 7 in its fourth-quarter earnings statement. The DBS CEO earned $15.4 million in 2022.

Collectively the bank’s management committee saw their 2023 variable compensation reduced by 21 per cent from the previous year despite record profits for 2023.

However, to help lower-income employees cope with higher costs of living, junior employees across the group, who make up half of total headcount, will receive a one-time bonus. A total of $15 million was set aside for this in expenses for 2023.

DBS also said in its Feb 7 statement that it has made a "whole-of-bank" effort and committed $80 million to improving its technology.

These efforts will enable the bank to better pre-empt disruptions to its services, provide customers with alternate channels for payments and account enquiries during disruptions, and shorten incident recovery time, it said.

Going forward, the bank will continue with its investments to sustain efforts to provide reliable services to customers, it added.

As a result of the disruptions at DBS last year, the Monetary Authority of Singapore imposed a six-month pause on the bank’s non-essential IT changes on Nov 1 to ensure the bank keeps a tight focus on restoring the resilience of its digital banking services.

During this time, DBS is not allowed to acquire new business ventures or reduce the size of its branch and ATM networks in Singapore.

DBS had said then that it would hold senior management accountable for the lapses, with it being reflected in their compensation.

Mr Gupta’s 2022 pay of $15.4 million consisted of a salary of $1.5 million, a cash bonus of $5.77 million and deferred remuneration in cash and shares of $8.04 million. A non-cash component — comprising club, car and driver benefits — worth $80,529 was also part of his pay package, according to the bank’s annual report.

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