UOB chief's pay up 11.5% to $10.9m last year

UOB deputy chairman and chief executive Wee Ee Cheong's pay for 2021 rose as the bank posted strong profits for the financial year amid an improved economic outlook and business situation.

Mr Wee's annual remuneration climbed by 11.5 per cent to $10.9 million for the financial year ended Dec 31 last year, according to the bank's annual report released on Wednesday.

This is after his pay dropped 8.8 per cent to $9.8 million in 2020, when the Covid-19 pandemic hit businesses and the economy.

Mr Wee's pay last year comprised a base salary of $1.2 million, a bonus of $9.7 million, and benefits-in-kind and others - transport-related benefits, including the provision of a driver - of $36,668.

Some 60 per cent of his variable pay is deferred and will vest over the next three years, of which 40 per cent will be issued in deferred cash while the remaining will be in the form of share-linked units.

Mr Wee, who is an executive director, does not receive a director fee for serving on the board and board committees as he is remunerated as an employee.

He is also not eligible to participate in UOB's revised share plan as he is a substantial shareholder.

Under its revised share plan, UOB is planning to allow eligible non-executive directors to be granted share awards, subject to shareholders' approval. It is proposing to pay approximately 30 per cent of the non-executive directors' fees in the form of fully paid ordinary UOB shares in lieu of cash.

For FY2021, UOB posted a 40 per cent year-on-year increase in net profit to $4.1 billion, while its total income rose 7 per cent year on year to $9.8 billion.

The bank said it saw strong performance across customer segments and geographies in the year, with stronger income growth and lower credit allowance as Singapore and regional economies gradually recovered from the pandemic.

In the annual report, Mr Wee also sounded an optimistic note on the long-term potential of the bank's business in Asean.

The bank in January said it was acquiring Citi's consumer units in four Asean markets - Indonesia, Malaysia, Thailand and Vietnam - in an aggressive push to scale up its retail franchise in the region.

The deal will double UOB's existing retail base in the four markets from about 2.9 million customers to 5.3 million, accelerating its target five years ahead of time.

Shares of UOB closed at $32.03, up 0.4 per cent, yesterday.

THE BUSINESS TIMES