DBS Bank CEO Piyush Gupta earns SGD 17.58 million in 2024; to leave this month

Singapore: Indian-origin Piyush Gupta received SGD 17.58 million in total pay for 2024 as the chief executive of Singapore's largest regional bank DBS Group, which he leaves this month.

DBS said Gupta's remuneration figure came after factoring in the performance scorecard and a normalisation in compensation following a reduction taken in 2023 in response to senior management taking accountability for digital disruptions.

This comes as the bank achieved a record performance in 2024 as full-year net profit rose 11 per cent to SGD 11.4 billion, with return on equity (ROE) at 18 per cent, according to the bank's annual report released on Thursday.

"The bank's stellar all-round performance, as well as its improved technology resiliency, resulted in a higher scorecard appraisal by the board compared to the previous year," DBS said in the report.

Gupta's pay in 2023 was reduced by 27 per cent to SGD 11.2 million. Compared to the SGD 15.4 million payment of 2022, his 2024 pay was up 14 per cent.

The bulk of his 2024 package came from a deferred award of SGD 9.36 million, to be paid mostly in shares. The rest was made up of a cash bonus of SGD 6.65 million, a base salary of SGD 1.5 million and other payments of SGD 80,533, comprising club, car and driver benefits.

In February, Gupta said the bank is planning to cut 4,000 contract and temporary staff over the next three years as artificial intelligence (AI) increasingly replaces humans.

"We have to fully embrace the possibilities, which should lead to a fundamental rethink of our operating models and even the creation of new business models," The Straits Times quoted Gupta as saying.

Reflecting on his career, Gupta said: "In less than a month, I will be retiring from DBS after 15 years at the helm. Looking back, this has, without a doubt, been the most fulfilling part of my entire career." He joined DBS in November 2009, when the industry was in the throes of the global financial crisis. Some years later, the bank met competition from fintechs and DBS further redefined banking by leveraging technology, said Gupta.

On what made DBS' digital transformation successful, Gupta said the bank transformed "everything from the technological architecture in the back end to customer interfaces at the front end".

DBS also moved away from product silos to thinking about customer journeys, changed the bank's culture into one that embraced innovation and put in place a system to measure progress.

Gupta is set to pass the baton to Tan Su Shan, currently deputy CEO and group head of institutional banking, when he retires at the next annual general meeting on March 28, 2025.

Tan noted that the last 15 years have shaped DBS into a high-performing, high-returns institution, with its ROE in 2024 being one of the highest among developed market banks.

Despite challenges ahead, there are plenty of opportunities, she said.

The bank has built strategic moats (competitive edge) and is in a strong position to continue delivering healthy shareholder returns and outperforming peers, she added.

Over the last 15 years, DBS' market capitalisation has quadrupled from SGD 35 billion in 2009 to SGD 124 billion in 2024, the report showed. In May 2024, the bank became the first Singapore-listed company to cross SGD 100 billion in market value.

ROE has more than doubled to 18 per cent in 2024, from 8.4 per cent in 2009.

Total shareholder returns for 2024 were 51 per cent, the highest in DBS' history outside crisis-rebound years, comprising a share price gain of 44 per cent and a dividend return of 7 per cent.

Its consumer banking customer base grew to 18.4 million in 2024, from 4.9 million in 2009, on the back of organic growth, strategic acquisitions and strength of partnerships.

The bank's workforce grew significantly to 41,000 employees in 2024, from just 14,000 in 2009, DBS noted.

DBS also has a wholly-owned subsidiary in India and operates across Asian markets.

Shares of DBS were trading 1.359 per cent higher at SGD 46.240 on SGX at 01.04 pm (local time) on Thursday.