Bumper pay rises for DBS' top bosses last year

DBS Bank bosses Jackson Tai and Frank Wong enjoyed bumper pay rises last year, with their total earnings exceeding $15 million - at least $1.5 million up on 2005.

Mr Tai, the chief executive, and Mr Wong, the chief operating officer, each earned between $7.5 million and $7.75 million during a year of record profits of $2.18 billion, according to the bank's annual report for 2006, out yesterday.

This compares with profits of $824 million in 2005, when a goodwill write-down hit the bottom line.

Mr Tai's 2006 base salary was at least $1.8 million, with bonuses making up 71 per cent of his total pay.

Mr Wong, who also heads DBS' Hong Kong unit, had a salary of at least $975,000, with bonuses comprising 81 per cent of his remuneration.

The plum pay packets were at least $1.5 million up on the 2005 performance year but below their 2004 earnings - the highest either man has received during their DBS careers.

Mr Tai received between $7.75 million and $8 million in 2004, while Mr Wong brought home between $7.25 million and $7.5 million.

The bank said yesterday that the latest report presents directors' pay 'in a more accurate manner' by taking better reflecting issues such as share options, which are issued in one year but often exercised in another.

This has meant restating pay figures for previous years.

Mr Tai's pay for 2005 was re-stated at between $5.75 million and $6 million, as the figure now excludes components such as share options that were issued in earlier years but vested in 2005.

The previous annual report had stated that he took home between $5.5 million and $5.75 million for the 2005 performance year.

Mr Wong's restated 2005 pay is $5.5 million to $5.75 million, down from the earlier stated figures of $6.75 million to $7 million.

The annual report also showed that 12 management personnel earned a combined $28 million last year.

DBS also proposed that the chairman's annual fees be raised by $20,000 to $105,000, while directors' fees would jump 40 per cent to $70,000. Shareholders will vote on the plan at the annual general meeting on April 4.

Staff costs last year rose 18 per cent to $1.24 billion, partly due to a tight labour market. These costs partly accounted for DBS' cost-to-income ratio of 44.3 per cent.

Asked about market rumours that he may leave the bank any time soon, Mr Tai said: 'I am sorry to disappoint you and, for the hundredth time, I have no contract with the bank.'



HIGH EARNERS

The bank's chief executive Mr Tai and chief operating officer Mr Wong each earned between $7.5 million and $7.75 million during a year of record profits of $2.18 billion.