DBS clears the air about CEO compensation, reiterates stakeholder capitalism

I REFER to the Hock Lock Siew column “No need for windfall taxes if humble businesses do the right thing” (The Business Times, Jun 22, 2022).

The article argues that if businesses do the right thing, whether in terms of remuneration to top management or giving back to the community, then windfall taxes – such as those imposed by the UK – may not be necessary.

DBS shares the views of the author on doing the right thing, and has 2 points of clarification.

First, while DBS CEO Piyush Gupta’s total compensation rose 48 per cent in 2021, this reflects a normalisation following a significant pay reduction he took in 2020 in response to the pandemic. It was also in recognition of the Group’s record FY2021 performance. Over a two-year period (2019-2021), his compensation was up 12 per cent, in line with overall staff compensation in DBS.   

Second, DBS is a strong believer in the importance of stakeholder capitalism. During the pandemic, the bank supported our customers hard-hit by Covid-19 in multiple ways, including loan moratoriums and relief packages. We created and protected jobs, and set up a S$10.5 million DBS Stronger Together Fund to help communities impacted by Covid-19 across the region. In early 2022, we also committed an additional S$100 million to DBS Foundation to further its efforts to improving lives in Asia.

Karen Ngui, group strategic marketing and communications, DBS Bank