It’s (almost) Chinese New Year, it’s the year of Singapore’s 50th birthday and DBS has just reached a landmark S$50bn in market capitalisation. Little wonder then that DBS chief executive Piyush Gupta chose this week to give 18,000 of his employees an unexpected extra bonus of S$1k (US$800) each – a cost to the firm of S$18m.
About 10,000 of the red-packet recipients are based in Singapore, with the rest working at the bank’s overseas offices (mainly in Southeast Asia, China and India). But staff above VP level, about 3,000 people, are missing out on the cash.
While banks typically use bonuses as retention tools, an extra $1k is unlikely to help DBS keep hold of its staff in competitive, well-paid job functions such as compliance and trade finance. “This is more about marketing DBS to consumers and giving its employer brand a small boost. It’s not about recruitment or retention – other than perhaps at a junior retail level,” says a Singapore-based recruiter.
Retention and recruitment rates at DBS and other Singapore banks are already strong – but not because of bonuses Share on twitter, which are traditionally smaller than those paid by foreign banks. Their track record of poaching from larger firms and their financial stability are among the reasons that Singaporean banks are receiving more applicants than ever this year. Still, on hearing the news about their extra bonus some “employees fell off their chairs”, the Business Times quotes Gupta as saying.
Greg Guyett and Tom DuCharme are stepping aside as co-heads of Asia-Pacific banking at J.P. Morgan. (Bloomberg)
Merger failure triggers senior resignations at CIMB and RHB. (Finance Asia)
Boost to banks in Shanghai Free Trade Zone as China opens up capital account and reforms interbank bond market. (South China Morning Post)
As ANZ reportedly searches for a replacement for boss Mike Smith, the ASX chairman downplays suggestions that he’s a candidate. (News.com.au)
Profit growth slows down at Bank of East Asia. (South China Morning Post)
What we know so far about the HSBC files. (The Guardian)