Yahoo Finance We Think Some Shareholders May Hesitate To Increase DBS Group Holdings Ltd's (SGX:D05) CEO Compensation
Key Insights
DBS Group Holdings' Annual General Meeting to take place on 28th of March
CEO Piyush Gupta's total compensation includes salary of S$1.50m
Total compensation is 2,183% above industry average
Over the past three years, DBS Group Holdings' EPS grew by 29% and over the past three years, the total shareholder return was 45%
Under the guidance of CEO Piyush Gupta, DBS Group Holdings Ltd (SGX:D05) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28th 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 want to keep CEO compensation within reason.
Check out our latest analysis for DBS Group Holdings
How Does Total Compensation For Piyush Gupta Compare With Other Companies In The Industry?
Our data indicates that DBS Group Holdings Ltd has a market capitalization of S$92b, and total annual CEO compensation was reported as S$11m for the year to December 2023. We note that's a decrease of 27% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, 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$492k. This suggests that Piyush Gupta is paid more than the median for the industry. Furthermore, Piyush Gupta directly owns S$90m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | S$1.5m | S$1.5m | 13% |
Other | S$9.7m | S$14m | 87% |
Total Compensation | S$11m | S$15m | 100% |
On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. In DBS Group Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at DBS Group Holdings Ltd's Growth Numbers
DBS Group Holdings Ltd's earnings per share (EPS) grew 29% per year over the last three years. In the last year, its revenue is up 20%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has DBS Group Holdings Ltd Been A Good Investment?
Boasting a total shareholder return of 45% over three years, DBS Group Holdings Ltd has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for DBS Group Holdings that investors should be aware of in a dynamic business environment.
Switching gears from DBS Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
