DBS paid CEO between S$7.5m and S$7.75m in 2006

DBS paid CEO between S$7.5m and S$7.75m in 2006
By Jeana Wong, Channel NewsAsia | Posted: 07 March 2007 2326 hrs

SINGAPORE : DBS has said it paid Chief Executive Officer Jackson Tai between S$7.5 million and S$7.75 million last year.

That was one-third more than in 2005, and in tandem with the group's earnings growth excluding one-off gains.

Last year, when DBS released its annual report, eyebrows were raised over the pay for head honchos Jackson Tai and Frank Wong.

They received big pay rises in 2005 despite the bank chalking up a 59 percent drop in earnings over 2004.

It was thus no surprise that their pay was in the spotlight on Wednesday, at the news briefing to release their 2006 annual report.

DBS Bank said the pay package for Mr Tai was being presented differently this year.

It is now reporting his total remuneration in a given year, regardless of when the actual payouts were made.

The variable component of the CEO's salary - such as bonuses and share plans - makes up 71 percent of the overall compensation.

This is sharply higher than the norm of just 30 percent in other corporations.

Chief Operating Officer Frank Wong was also paid between S$7.5 million and S$7.75 million.

Excluding Mr Tai and Mr Wong, the bank paid its 15 other management committee members a total of S$15 million in 2006.

DBS said it employed more senior management than its local rivals UOB and OCBC.

It also justified its decision to pay a director's fee of S$250,000 each for almost all its directors.

Mr Tai said, "Six of them are not from Singapore or not based in Singapore. I'm very proud of all 12 and it's quite a task to get these directors to chair our risk management committee, our nominating committee. We have a compensation committee, we have a credit committee, we also have a strategy and planning committee, so it's a lot of work involved.

"We look at industry practice. We want to make sure that we have the ability to keep and also attract the best directors we can."

A recent survey by human resources company ECA International revealed that senior managers in Singapore earned about five times more than junior-level managers.

At the press briefing on Wednesday, Mr Tai also dismissed rumours that he was hired on a contractual basis and might be leaving at the end of his contract. - CNA/ms