Salary trends: People walk into the UOB building in the Raffles Place financial district. The bank’s chairman is confident Asean will remain a stable region of economic growth and strong trade opportunities if global geopolitical tensions escalate. — AFP
SINGAPORE: UOB chief executive officer (CEO) Wee Ee Cheong is earning less in 2024 than in 2023, despite his base salary increasing.
Wee’s US$15.05mil pay package was 5.5% lower than the US$15.9mil he received in 2023, but still higher than the US$14.2mil he racked up in 2022, according to the bank’s annual report, out on March 21.
His annual remuneration comprises a base salary of US$1.44mil, up from the US$1.2mil in 2023, and a bonus of US$13.56mil, down from US$14.7mil in 2023.
Benefits-in-kind, transport-and events-related benefits amounted to US$46,944.
A UOB spokesperson told The Straits Times when asked about Wee’s lower pay in 2024: “The board takes into account various factors when determining the CEO’s compensation.
“These include taking a long-term view in building the bank, the group’s achievement against its goals and the CEO’s overall performance as assessed by the board.”
UOB, Singapore’s third-largest bank, noted in its annual report that 60% of Wee’s variable pay is deferred and will vest over the next three years.
It added that 40% of the deferred variable pay will be issued in deferred cash, with the remaining 60% coming in the form of share-linked units.
DBS Bank said in its annual report earlier in March that outgoing CEO Piyush Gupta received US$17.58mil in total pay for 2024.
Wee noted in the UOB report that the Asean region continues to be resilient despite global uncertainties in 2024, thanks to its strong economic fundamentals, young and expanding workforce and robust consumption.
He noted: “Key mega trends – digitalisation, sustainability investments and a rising middle class – will continue to fuel Asean’s dynamism.
“UOB is well positioned to ride on these trends, supporting our customers to fulfil their needs and aspirations.”
UOB chairman Wong Kan Seng added that the bank is confident Asean will remain a stable region of economic growth and strong trade opportunities if global geopolitical tensions escalate.
UOB’s net profit in 2024 grew 6% from 2023 to hit a record US$6.04bil, driven by strong net fee income and trading and investment income.
The bank said its acquisition of Citigroup’s consumer banking businesses in Indonesia, Malaysia, Thailand and Vietnam has expanded its retail customer base to 8.4 million across Asean.
UOB completed integrating Citigroup’s consumer business in Thailand in 2024, after finishing the same process in Malaysia and Indonesia in 2023.
The integration for Vietnam is on track to be completed by the end of 2025.
The bank is also making strides in its green efforts, with sustainable financing in 2024 coming in at US$58bil, up from US$40.7bil in 2023, it said in its sustainability report, also released on March 21.
It noted that its financing is primarily in waste-management infrastructure, materials and resource recovery and water-management infrastructure.
UOB committed in 2024 to be an early adopter of the Taskforce on Nature-Related Financial Disclosures, which encourages organisations to integrate nature into decision-making.
It added that it seeks to contribute to and support activities that align with halting and reversing biodiversity loss by 2030 and living in harmony with nature by 2050.
These include strengthening the bank’s capacity in understanding and managing the nature risks that are material to its business.
Additionally, supporting customers in making decisions that are similarly aligned; financing the scaling up of nature-related technologies and investments; and advocating nature’s importance in the world.
“We will continue to monitor the nature risk in our corporate loan portfolio and commit to incorporate nature into our broader sustainability strategy.
“Given the close links between climate and nature, we believe doing so will also aid us in achieving our net-zero targets,” UOB said.
UOB said it is also a participant, among other Singapore banks, in an initiative with the Cambridge Institute for Sustainability Leadership to develop nature scenarios for the material sectors of its portfolio. — The Straits Times/ANN
