Why DBS pays massive middle-office bonuses; why Barclays doesn't

Product control at DBS: not a particularly glamorous role, not a top-tier international bank. But PC bonuses at DBS are stacking up nicely against those at larger institutions, including Barclays.

The average bonus for a DBS product controller in Singapore is about three months, with top performers earning six. "At the top end, that's a lot for a PC role - it's back to the type of numbers we were seeing in 2006," says a recruiter who asked not to be named.

A typical AVP base salary at the Singaporean bank is about S$110k, bringing total compensation to more than S$137k for average achivers. At Barclays, by contrast, you win on base (S$130k), but your zero to one-month bonus means that overall you're not much better off, or worse off, than your counterparts at the local firm.

"Barclays upped its base in Singapore last year by 10 to 20 per cent and hardly lost anyone. But bonus expectations stayed high and now it has a lot of unhappy campers. Some people don't care whether their total compensation is up or not, they just care about their bonuses," says the headhunter.

DBS product controllers had modest bonus expectations and are happy with their payments. Team attrition is low.

Retention is particularly important in PC, a sough-after function in which demand for staff exceeds supply.

"Banks can suddenly become hot in product control if they pay well. DBS will be hiring a bit in PC this year, so it shouldn't have any problems attracting people either. Candidates who want to work in a performance-based culture will see it as an attractive option," he adds.

DBS clocked up a 28 per cent rise in profits last year, giving it room to reward middle office staff.