No silver bullet: CEO remuneration must consider myriad of factors

ONE of the biggest items of interest, when a company (particularly a high-profile one) puts out its annual report every year, would likely be the CEO's pay package.

Recent news reports highlighting DBS CEO Piyush Gupta's S$11.9 million remuneration for 2018 no doubt sparked lively conversations over wine tables. While most observers will not quibble over Mr Gupta's generous package, given his outstanding stewardship of the bank, executive remuneration - and especially that of non-owner/non-founder CEOs - can be an emotive issue in these days of rising income inequality.

In Mr Gupta's case, his base salary remains a relatively humble S$1.2 million. His total package for 2018 was significantly boosted by higher cash bonuses, stocks and non-cash benefits that were tied to the bank's performance. And while his annual package puts Mr Gupta amongst the highest paid bank bosses in Asia, he is still significantly behind the likes of UBS' Sergio Ermotti and Credit Suisse's Tidjane Thiam.