30% pay hike for UOB chief last year

Bulk of $9m pay package made up of bonuses, says annual report

United Overseas Bank (UOB) chief executive Wee Ee Cheong got a 30 per cent pay hike last year, taking home between $8.75 million and $9 million.

In 2011, his package was about $6.5 million to $6.75 million.

The increase was on the back of UOB's record full-year profit of $2.8 billion.

The UOB annual report, out yesterday, revealed that the bulk of Mr Wee's pay packet, or 85.4 per cent, comprised bonuses.

Mr Wee, who is also UOB's deputy chairman, earned about $200,000 in director's fees, and about $1 million in salary.

The remaining 1.3 per cent was benefits in kind.

UOB said that 60 per cent of the variable bonus to be paid to Mr Wee will be deferred and vested over three years, and is subject to the bank fulfilling pre-determined performance conditions.

Half of the 60 per cent deferred bonus will be issued in the form of performance units.

His father and outgoing UOB chairman Wee Cho Yaw will get $2.75 million to $3 million, unchanged from 2011.

Of this, 18.7 per cent is director's fees.

The amount also includes an advisory fee of $2.25 million that the bank's remuneration committee has proposed to pay him for providing advice and guidance to management.

However, this proposed fee is subject to shareholders' approval at the bank's annual general meeting to be held on April 25.

The Wee family is the single largest shareholder of UOB, which is the only bank to report directors' pay in bands.

DBS Bank paid chief executive Piyush Gupta $9.33 million last year, which means he is still on track to be the best-paid chief executive among those of the local banks last year. DBS reported a record profit of $3.81 billion.

It remains to be seen how much OCBC Bank, which posted a record $3.99 billion profit last year, will pay its chief executive, Mr Samuel Tsien, who took over from Mr David Conner in April last year.

OCBC's earnings include a divestment gain of $1.17 billion, net of tax, from the sale of its stakes in Fraser & Neave and Asia Pacific Breweries. Excluding the one-time sales, core profit was $2.83 billion.

It paid Mr Conner $7.1 million in 2011.


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