OCBC raises chairman's fee to $1.8m

OCBC raises chairman's fee to $1.8m

OCBC Bank raised its board chairman's annual fee from $45,000 to $1.8 million with effect from July 1 last year.

The hike in the chairman's fee will need shareholders' approval at its upcoming annual general meeting on April 25, OCBC said on Monday in its 2012 annual report.

Chairman Cheong Choong Kong received $2.58 million for 2012, down from $2.95 million previously.

Dr Cheong's 2012 pay includes $900,000 chairman fee, since the new fee is effective only from July 1, 2012.

Dr Cheong, who became OCBC chairman in 2003, also provided consultancy services to the bank.

OCBC said that his consultancy contract ended on June 30, 2012.

His 2012 pay included 452,025 share options grant with $10.302 acquisition price which can be exercised from March 15, 2014 to March 13, 2018.

DBS Group chairman Peter Seah received $999,284 for 2012, slightly more than the previous $946,477.

United Overseas Bank outgoing chairman Wee Cho Yaw got $2.75 million to $3 million, unchanged from 2011.

OCBC also disclosed that chief executive Samuel Tsien was paid $5.5 million as the bank posted record net profit of $3.99 billion, an increase of 73 per cent from $2.31 billion in 2011 which included an $1.2 billion divestment gain.

Excluding the divestment gains, core net profit grew 24 per cent to a record $2.83 billion.

Mr Tsien was promoted to chief executive on April 15, 2012. His 2012 pay includes the work he did as senior executive vice-president from Jan 1, 2012 to April 14, 2012.

Mr Tsien is the lowest paid bank chief of the three local banks.

DBS chief executive Piyush Gupta got a 15 per cent pay hike to $9.33 million for 2012, up from 2011's $8.08 million as the bank's net profit hit a high of $3.81 billion.

UOB chief executive Wee Ee Cheong had a pay jump of more than 30 per cent to between $8.75 million and $9 million from between $6.5 million and $6.7 million as UOB's earnings rose 20.5 per cent to a record $2.8 billion.

The pay is disclosed in $250,000 bands.

Included in Mr Tsien's $5.5 million is $1.1 million salary, $1.8 million cash bonus and 951,663 share options grant with $10.302 acquisition price.

Mr Tsien's share options can be exercised from March 15, 2014 to March 13, 2023.

David Conner who stepped down as OCBC chief executive on April 15 received $6 million, comprising compensation for being CEO for 3.5 months in 2012 and non-executive director from April 15 to Dec 31, 2012 and 488,029 OCBC ordinary shares on completion of his employment contract.

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