DBS : D05 0% chief executive Piyush Gupta received a total remuneration of S$11.2 million for the financial year ended Dec 31, 2023, representing a 27 per cent year-on-year decline from S$15.4 million previously.

Based on DBS’ annual report released Wednesday (Mar 6), Gupta’s base salary of S$1.5 million remained unchanged from the previous year.

He received a lower cash bonus of S$4.1 million as opposed to S$5.8 million in FY2022 and deferred remuneration of about S$5.6 million, down from S$8 million the year before.

Of the deferred amount, DBS said that around 17.4 per cent or S$965,874 will be in cash, with the remaining to be issued in the form of shares.

These shares amounting to some S$4.6 million do not include the estimated value of retention shares worth S$832,650, which serve as a retention tool and to compensate staff for the time value of deferral.

DBS employees do not receive ordinary dividends on unvested shares.

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A non-cash component amounting to S$72,992 was also included as part of Gupta’s total remuneration for FY2023. It comprised the value of a club, car and driver benefits received by the chief executive.

Earlier in February, the bank had announced that it was reducing the variable pay for its management committee as its members take accountability for the bank’s digital disruptions in 2023.

Variable pay of the group management committee was collectively reduced by 21 per cent, while Gupta would take a deeper cut of 30 per cent.

DBS’ announcement of Gupta’s pay cut coincided with the bank’s release of its FY2023 financial results that reflected a 3 per cent year-on-year drop in fourth-quarter net profit to S$2.27 billion.

It declared a dividend of S$0.54 per share for the period, up from S$0.42 per share in the previous Q4. This brings the ordinary dividend for the full-year to S$1.92 per share.

In addition, DBS proposed a bonus issue on the basis of one bonus share for every existing 10 ordinary shares held.

The bonus shares will qualify for dividends starting with the first-quarter 2024 interim dividend and will increase the pace of capital returns to shareholders.

An annual general meeting (AGM) will be held by DBS on Mar 28.

Among the resolutions to be passed at the AGM, shareholders will also have to vote to approve S$4.8 million in fees for non-executive directors’ remuneration for the financial year – up from the S$4.6 million awarded the year before.

Looking ahead, DBS said that it expects its earnings to be maintained at “around 2023 levels” as slightly lower net interest margins are offset by loan growth.

The group is also assuming credit costs to normalise “although asset quality remains resilient”. It guided for specific allowances to move towards 17-20 basis points of loans.

 “In the event that credit costs deteriorate beyond our assumptions, we have the capacity to release general allowance overlays that had been prudently built up in previous years,” said DBS chief financial officer Chng Sok Hui.