Yahoo Finance Shareholders May Not Be So Generous With DBS Group Holdings Ltd's (SGX:D05) CEO Compensation And Here's Why
Key Insights
DBS Group Holdings will host its Annual General Meeting on 31st of March
CEO Piyush Gupta's total compensation includes salary of S$1.50m
The overall pay is 2,864% above the industry average
DBS Group Holdings' total shareholder return over the past three years was 98% while its EPS grew by 8.5% over the past three years
Performance at DBS Group Holdings Ltd (SGX:D05) has been reasonably good and CEO Piyush Gupta has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 31st of March, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for DBS Group Holdings
How Does Total Compensation For Piyush Gupta Compare With Other Companies In The Industry?
According to our data, DBS Group Holdings Ltd has a market capitalization of S$86b, and paid its CEO total annual compensation worth S$15m over the year to December 2022. We note that's an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$1.5m.
For comparison, other companies in the Singapore Banks industry with market capitalizations above S$11b, reported a median total CEO compensation of S$519k. This suggests that Piyush Gupta is paid more than the median for the industry. Moreover, Piyush Gupta also holds S$76m worth of DBS Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | S$1.5m | S$1.2m | 10% |
Other | S$14m | S$12m | 90% |
Total Compensation | S$15m | S$14m | 100% |
On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. DBS Group Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at DBS Group Holdings Ltd's Growth Numbers
Over the past three years, DBS Group Holdings Ltd has seen its earnings per share (EPS) grow by 8.5% per year. In the last year, its revenue is up 15%.
We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has DBS Group Holdings Ltd Been A Good Investment?
We think that the total shareholder return of 98%, over three years, would leave most DBS Group Holdings Ltd shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for DBS Group Holdings you should be aware of, and 1 of them is significant.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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