DBS’ outgoing chief executive Piyush Gupta received a total remuneration of S$17.6 million for the financial year ended Dec 31, 2024, representing a 56.5 per cent year-on-year increase from about S$11.2 million previously.
In FY2022, Gupta’s total remuneration was S$15.4 million. Comparing his total remuneration for FY2024 to that of FY2022, it represents an increase of 14.3 per cent.
Shares of DBS rose 0.8 per cent or S$0.36 to S$45.98 at the outset, from its closing price of S$45.62 on Wednesday.
Based on DBS’ annual report released on Thursday (Mar 6), Gupta’s base salary of S$1.5 million for 2024 remained unchanged from the previous year. He received a higher cash bonus of S$6.6 million as opposed to S$4.1 million in FY2023 and deferred remuneration of about S$9.4 million, up from S$5.6 million the year before.
Of the deferred amount, DBS said that around 17.1 per cent or S$1.6 million will be in cash, with the remaining to be issued in the form of shares.
These shares do not include the estimated value of retention shares worth S$1.4 million, which serve as a retention tool and to compensate staff for the time value of deferral.
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DBS employees do not receive ordinary dividends on unvested shares.
A non-cash component amounting to S$80,533 was also included as part of Gupta’s total remuneration for FY2024. It comprised the value of a club, car and driver benefits received by the chief executive.
Last year, the bank announced that it was reducing its management committee’s variable pay 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.
Total shareholder returns for 2024 ‘highest in DBS’ history’
The latest annual report indicated that total shareholder returns for 2024 amounted to 51 per cent, “the highest in DBS’ history outside crisis-rebound years”. This comprised share price gains of 44 per cent and a dividend return of 7 per cent.
The bank released its results for the fourth quarter and the full year on Feb 10. Net profit for Q4 was at S$2.52 billion, up 11 per cent from S$2.27 billion in the year-ago period. Its full-year net profit leaped to a new record high of S$11.29 billion, up 12 per cent from the year-ago period.
The lender proposed a final dividend of S$0.60 per share for Q4, which brings it to S$2.22 per share for the full year – an increase of 27 per cent over the previous year.
It also announced a capital return dividend of S$0.15 per share per quarter to be paid out over financial year 2025; it expects to pay out a similar amount of capital in the next two years.
An annual general meeting (AGM) will be held by DBS on Mar 28.
In a separate filing, the bank announced that Gupta will be retiring at the upcoming AGM “as part of the board renewal process”.
DBS’ current deputy CEO, Tan Su Shan, will succeed him on Mar 28.
In the latest annual report, Tan said in a column titled Deputy CEO reflections that the bank is “in a strong position to continue delivering healthy shareholder returns and outperforming peers”.
She added: “The strategic moats we have built mean our successes are not easy to replicate and there is momentum in our business. Our strategic vision will preserve our relevance and ability to stay ahead.”
Looking ahead, Tan also noted continued uncertainties in the macroeconomic environment and geopolitical landscape. These include potential policy shifts that could disrupt supply chains and cause market volatility. She affirmed that the bank is “proactively addressing these challenges”.
