DBS Bank's Indian-origin CEO Piyush Gupta Faces 27% Salary Cut For Tech Glitches In 2023

The salary of DBS Bank’s Indian-origin chief executive Piyush Gupta was cut by a hefty 27 per cent to SGD 11.2 million (about Rs 69 crore) last year for various incidents of technical glitches, the bank said in its annual report.

In 2022, Gupta received a salary of SGD 15.4 million.

The Singapore-based bank had, in February, said that the 2023 variable compensation for its CEO and other members of the group management committee has been cut, holding them accountable for the series of digital disruptions that took place last year.

“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,” The Straits Times quoted from the bank’s latest annual report.

This pay cut was taken despite the bank’s record 2023 profits and outperformance in many areas, it added.

In 2023, the bank had a record year, with total income crossing the SGD 20 billion mark for the first time. Net profit reached SGD 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,” the bank said in its remuneration segment of the latest 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, a naturalized Singaporean, was not alone in receiving a pay cut.

The total variable wages for senior management including the CEO was reduced by 21 per cent to reflect the 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 SGD 63.5 million in 2023 from SGD 73.8 million in 2022.

Gupta’s base salary, which stood at SGD 1.5 million, remained 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, according to the Singapore daily report.