DBS Bank trimmed senior executive pay by 13 percent last year to hold managers accountable for weaknesses. Meanwhile in Europe a debate on remuneration is also testing Credit Suisse shareholders.
Chief Executive Officer Piyush Gupta informed shareholders at the lender’s annual meeting (AGM) that remuneration for the bank’s senior management, including his own fell to $58.2 million Singapore dollars in 2016.
Besides bad loans, the management of Singapore’s largest bank penalized executives for a weaker performance in Greater China and «control lapses» on the regulatory front.
1MDB Shadow
The Singapore regulator imposed financial penalties on Singapore's largest bank DBS and told the institution to appoint an independent party rectification measures.
The inspection of DBS in relation to its 1MDB-related fund flows uncovered several breaches of Anti Money Laundering (AML) requirements and control lapses, according to the Monetary Authority of Singapore (MAS).
CEO Gets Deeper Cut
«Even though our overall performance was very good, we thought we should rate ourselves down, I think it’s fair, because we should hold ourselves accountable to you,» said Gupta.
A 93 percent surge in DBS’s bad-debt allowances last year reduced annual profit by 2 percent as the firm grappled with Singapore’s energy-services sector turbulence which saw clients default on debt obligations. DBS also reported slumping profit in Hong Kong and a loss for the rest of Greater China.
Gupta’s total pay fell 23 percent to $8.44 million Singapore dollars, a deeper cut than his counterparts at Singapore’s two other large banks.
Meanwhile in Switzerland
Credit Suisse top executives and board members caved to shareholder pressure on bonus pay last week. Three influential shareholder groups remain unconvinced.
Zurich-based Credit Suisse surprised investors last week by announcing that Chief Executive Tidjane Thiam and the 11-member top management around him would forgot 40 percent of their bonuses.
The Urs Rohner-led board also decided not to lift its pay on the year, reversing earlier plans for a pay rise.
Credit Suisse are due to hold their own AGM on Friday 28 April.
