DBS boss Piyush Gupta takes US$3 million pay cut over Singapore digital banking disruptions
- Gupta’s compensation took a 30 per cent hit due to last year’s disruptions that affected payment and ATM transactions across the city state
- Singapore’s central bank had also banned DBS from acquiring new business ventures for six months
DBS Group Holdings Ltd.’s fourth-quarter profit came in short of analyst expectations amid signs of pressure on margins. And while 2023 results hit a record, Chief Executive Officer Piyush Gupta’s compensation got hit due to last year’s digital banking disruptions.
Last year’s outages that saw payment and ATM transactions stalled across the city state have resulted in the variable pay for DBS’ group management committee being collectively cut by 21 per cent from a year earlier. This includes a deeper 30 per cent reduction for Gupta, one of the highest paid executives in the country, amounting to S$4.1 million.
“We’ve taken accountability,” Gupta said at an earnings briefing. “I think that’s a good element of governance.”
DBS is the first of major Singapore banks reporting results, showing how its robust performance that has been propelled by elevated interest rates may have peaked as rates are expected to decline this year.