When will DBS get a new CEO?

DBS chief Piyush Gupta is nearing his 15th year at the helm of South-east Asia’s biggest bank, and does not appear to be slowing down. But there has been considerable chatter about how long he is going to remain in charge.

At a briefing for analysts held when the bank released its first-quarter results in May, he was asked point-blank if he was leaving this year. His reply: “No, I am not retiring this year.”

Asked subsequently whether he would be at DBS three years hence, Gupta, among the highest-paid CEOs in Singapore, sidestepped the question. He pointed to the bank’s “robust succession planning process at every step and in every level of the organisation”.

He added: “The defining questions to me are: Do we have enough momentum in the business, is our strategy sound, is our execution capability robust, and is the culture in the company long-lasting? I think the answer to all of those is yes.”

Given that answer, even if there is no change, it is probable that Gupta could step aside in the near future.

Long service

Gupta was handed the reins of the Singapore bank in November 2009, joining from Citibank, where he was then CEO for South-east Asia, Australia and New Zealand.

While Gupta’s time at DBS is at this point not as long as his 27-year stint at Citi, he is already DBS’ longest-serving CEO.

At 14 years, his tenure is almost twice as long as the bank’s next longest-serving CEO, Ngiam Tong Dow, who held the top role for eight years.

Gupta, 64, is among the oldest of chief executives helming Singapore companies in Singapore state investor Temasek’s portfolio.

There is Loh Chin Hua of Keppel, and Hiew Yoon Khong of Mapletree Investments, who are both 62. Other Temasek-portfolio company chiefs range in age from their late 40s to 60.

That said, Gupta has been at the helm for a shorter period of time than Hiew, for example. Mapletree’s group CEO was appointed in 2003, six years before Gupta took DBS’ top job.

Leadership reorganisation

DBS has historically chosen most of its successors from outside the bank, with Gupta himself having joined DBS from Citibank.

But Gupta himself has made reference to the internal candidates who are qualified for his role.

DBS made a leadership reshuffle in 2023, rotating some of its younger management staff into different roles at the bank, following the retirement of Sim S Lim, then group head of consumer banking and wealth management.

Among those moved was Han Kwee Juan, who became Singapore country head from head of strategy and planning.

Hired in 2019, he was named by Gupta, in a 2019 interview with business and finance magazine Euromoney, when he spoke about his potential successors.

Then, Gupta said he had four or five candidates, all of whom “with the right grooming, have the potential to take my job some day”.

Other bankers he named included Tan Su Shan, head of corporate and commercial banking, and Shee Tse Koon, head of consumer banking group and wealth management.

Tan was formerly head of consumer banking group and wealth management, while Shee was formerly Singapore country head.

Han also wore a second hat as acting chief information officer for DBS from November 2023 to May 2024, when the bank split its technology and operations function into two units under its drive to improve technology resiliency.

Gupta said he was a “big believer in having generalists”, which meant someone who could look after the consumer, wealth, as well as corporate side of the business.

Howard Yu, Lego professor of management and innovation at IMD Business School, rates the chances of DBS selecting an internal candidate as “quite high” – around 70 to 80 per cent.

He said: “The recent leadership reorganisation, which saw key internal candidates elevated to critical roles, strongly suggests that DBS is actively grooming potential successors from within.”

The professor also said that the ideal candidate would be an “inside outsider” – someone who has been with the company for a long time, but has not been responsible for the mainstream business. This would imbue the individual with a unique blend of institutional knowledge and fresh perspective.

“This type of ‘rebel talent’ can be particularly valuable in driving necessary changes, while still understanding the organisation’s limits and levers,” he said.

In any case, the choice for DBS’ next CEO would likely need the green light from its largest shareholder, Temasek.

Yu said Temasek’s substantial stake in the bank is likely to influence the selection of a new CEO “who aligns with Singapore’s long-term strategic interests”.

“The chosen candidate will need to demonstrate an ability to maintain strong relationships with government stakeholders and continue DBS’ role as a key pillar of Singapore’s financial sector,” he said.

The next thing is timing

These indicators aside, there is no official word on when or if Gupta is stepping down anytime soon.

The timing of the change could well depend on various factors. Given the significance of such a change, the bank is likely to give the market some time to digest the news before the actual handover.

One could look to Singapore’s second-largest bank, OCBC, which announced in January 2021 that Helen Wong would take over as CEO. She officially took up the post in April, around the time of the bank’s annual general meeting, when she then could meet the shareholders.

Wong was already at OCBC. If the next DBS CEO comes from within the ranks, a similar timeframe could possibly work.

There are also various moving parts. Another factor might well be determined by what happens to the board chairmanship.

The bank’s chairman, Peter Seah, has been in his role since May 2010, and a board member since 2009.

Depending on when board-level renewal takes place, it is likely to have an impact on when the CEO change happens.