[Update] CEO pay cuts and raises from Sembcorp, DBS, UOB, and OCBC

Update! 

According to OCBC's 2017 annual report released today (6 April), CEO Samuel N. Tsien received S$9.6 million in remuneration for 2017 - up 15.61% from 2016's S$8.3 million. In 2017, the bulk of Tsien's remuneration came in the form of bonus (S$5 million), followed by deferred shares (S$2.5 million).  The remaining comprises of S$1.2 million in salary, S$839,000 in share options, and S$61,000 under 'others' representing non-cash component such as club and car benefits.

For the financial year ended 2017, OCBC Group net profit after tax rose 19% to a new high of S$4.15 billion, driven by our key pillars of banking, wealth management and insurance. All delivered robust performances.

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Based on its 2017 annual report released late last week (29 March), Sembcorp Industries revealed that to underscore their support of the company through these challenging times, the directors are taking a voluntary 15% reduction in their directors' fees for FY2017.

The annual report also noted that the group president and CEO, and senior management will also be voluntarily undertaking a pay reduction of 15% and 10% respectively.

After the reductions, which were applied to their remuneration for financial year 2017, group president and CEO Neil McGregor, took home S$1.14 million in salary, S$521,000 in bonuses, and S$2.32 million in share based compensation. While chairman Ang Kong Hua received S$447,000 in cash based fees and S$191,000 in share based fees for a total remuneration of S$638,000.

2017 was a challenging year for Sembcorp's business sectors with 2017's group net profit falling to S$230.8 million compared to S$394.9 million in 2016. At the same time, turnover was S$8.3 billion compared to S$7.9 billion in 2016.

A joint statement by Ang and McGregor, said: "While our weaker financial results were a consequence of the difficult market environment, your board and management fully recognise the challenges we face, and are committed to addressing them head-on to lift our performance and returns."

CEO pay raises

On the other hand, having seen an improvement in company earnings in 2017, DBS CEO Piyush Gupta and UOB CEO Wee Ee Cheong saw remuneration go up by 21.6% and 11.3% respectively.

DBS' 2017 annual report revealed that Gupta drew a total of S$10.3 million in remuneration last year - S$1.2 million in salary, S$3.8 million in cash bonus, S$5.2 million in share plans, and S$64,789 under 'others' representing non-cash component and comprises club, car and driver.

Justifying the increased remuneration, DBS' 2017 annual report noted: "DBS delivered record earnings amounting to SGD 4.39 billion, up 4%. Total income was SGD 11.9 billion, also a new high."

In calculating Gupta's remuneration, the bank also took into account DBS’ significant progress towards its digital transformation; the successful integration of ANZ's retail and wealth franchise across five markets; customer satisfaction; and employee engagement, all under his leadership.

According to UOB's 2017 annual report, Wee earned a total of S$9.4 million in 2017 - compared to S$8.4 million in 2016.

Comparing the bank's 2017 performance with 2016, the bank's 2017 group financial report noted net earnings of S$3.39 billion, 9% higher than a year ago.

OCBC Bank's annual report was unavailable at time of publication.

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