DBS next to slash pay, bonuses
DBS bank has announced plans to cut pay and bonuses across the entire company. DBS says big bonus cuts for top managers
<cite class="auth">Reuters - Tuesday, November 25</cite>
SINGAPORE, Nov 25 - DBS Group <dbsm.si>, Southeast Asia's biggest bank, said its senior managers will see pay cuts this year as variable bonuses will be sharply lower than previous years amid global market turmoil.
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"All DBS employees and especially the senior managers will experience pay cuts in the form of significantly reduced bonuses," a DBS spokeswoman said in an emailed response to Reuters. "Given the global economic turmoil, variable bonuses in 2008 will be significantly lower than that paid out in previous years." The spokeswoman did not provide details but said senior managers would see larger pay cuts than junior staff. Last year DBS spent S$1.38 billion on employees' compensation, up 11 percent from 2006, according to the bank's annual report. DBS earlier this month announced it is laying off 900 employees, mostly in Singapore and Hong Kong, its biggest job cut ever, to reduce costs as it tries to run a tighter ship amid a challenging business environment. DBS posted a 38 percent drop in third-quarter profit as losses from bad debts quadrupled. Singapore state investor Temasek Holdings [TEM.UL], which owns a 28 percent stake in DBS, last week said senior managers had volunteered to take pay cuts of between 15 to 25 percent.</dbsm.si>
