26.8 C
Singapore
Monday, March 4, 2024
Ads

DBS CEO GETS 30% CUT IN VARIABLE PAY FOLLOWING IBANKING DISRUPTIONS

In February 2024, DBS Group Holdings announced significant cuts to the variable compensation of its chief executive officer, Piyush Gupta, and other members of the management committee. This decision aimed to hold them accountable for the series of digital disruptions experienced by the bank in 2023.

Advertisements

Details of Compensation Cuts

Mr. Gupta faced a substantial 30% reduction in his variable compensation, resulting in a decrease of $4.14 million. This reduction comes in the wake of his $15.4 million earnings in 2022. Additionally, the entire management committee saw a collective decrease of 21% in their variable compensation compared to the previous year, despite the bank achieving record profits in 2023.

Initiatives for Lower-Income Employees

Amidst these cuts, DBS Group Holdings implemented measures to support its lower-income employees. Junior staff members, constituting half of the total headcount, received a one-time bonus totaling $15 million. This bonus aimed to alleviate the financial burden posed by the rising costs of living.

Investments in Technology

Recognizing the importance of technology in mitigating disruptions, the bank allocated $80 million towards enhancing its technological infrastructure. These investments are intended to bolster the bank’s ability to anticipate and address service interruptions promptly.

Efforts to Address Disruptions

DBS Group Holdings reiterated its commitment to providing reliable services to its customers. The bank outlined its efforts to pre-empt disruptions, offer alternative channels for payments and account inquiries during downtime, and expedite incident recovery processes.

Advertisements

Regulatory Response

In response to the disruptions experienced in 2023, the Monetary Authority of Singapore imposed strict measures on DBS Group Holdings. These measures included a six-month pause on non-essential IT changes and restrictions on business expansion and network reductions. The regulatory intervention underscored the importance of restoring the resilience of the bank’s digital banking services.

Accountability Measures

DBS Group Holdings emphasized its commitment to holding senior management accountable for the disruptions. The compensation cuts served as a tangible reflection of this accountability, signaling the seriousness with which the bank approached the lapses in service.

Details of Piyush Gupta’s Pay

Mr. Gupta’s 2022 compensation package comprised a combination of salary, cash bonuses, and deferred remuneration. A non-cash component, including club memberships and car benefits, further augmented his pay. The substantial reduction in his variable compensation for 2023 highlighted the direct impact of the disruptions on executive earnings.

Conclusion

The compensation cuts at DBS Group Holdings underscore the bank’s commitment to accountability and resilience in the face of digital disruptions. By reallocating resources, supporting lower-income employees, and investing in technology, DBS aims to enhance its operational stability and uphold its reputation as a leading financial institution.

- Advertisement -
- Advertisement -
Latest News

WIFE THINKING IF SHE SHOULD FORGIVE CHEATING HUSBAND WHO HIT HIS OWN HEAD

Out of the blue and completely unexpected, I found out my husband cheated.That was last year in December,...
- Advertisement -