DBS Holdings Group Ltd. cut Chief Executive Officer Piyush Gupta’s total 2020 compensation by 24% after Singapore’s largest lender posted its first annual drop in profit for four years.
The bank slashed Gupta’s bonus by 27%, resulting in a 24% decline in his overall compensation to S$9.2 million ($6.8 million) for the 2020 performance year, down from S$12.1 million a year earlier, DBS said in its annual report on Monday. The reduction reflects the “extremely challenging operating environment,” it said, as the global pandemic endured.
DBS also cut the compensation of other senior bankers. Excluding Gupta’s pay, the median decline in total remuneration and variable pay of its management committee members for both 2019 and 2020 was 12%, and 17%, respectively, the report said.
The Singapore-based bank isn’t alone in cutting salaries as global lenders tackle the impact of the coronavirus pandemic. Standard Chartered Plc’s Bill Winters saw his total pay slashed 29%, while Barclays Plc’s Jes Staley’s was reduced by about a third. DBS’s pay cuts follow the bank’s first annual earnings decline in four years as a contraction in interest income and a rise in provisions for potential soured loans curbed profitability.