By SIOW LI SEN

UNITED Overseas Bank (UOB) chief executive Wee Ee Cheong received between $5.5 million and $5.75 million compensation last year - down 8 per cent, but making him the best-paid boss among the three local banks.

In 2008, UOB's net profit fell 8.2 per cent to $1.9 billion.

Richard Stanley, who joined DBS Group Holdings on May 1, 2008, received up to $5 million for eight months' work. OCBC chief executive David Conner had his pay cut almost 40 per cent last year to range between $3.75 million and $4 million.

Pay is reported in $250,000 bands.

UOB chairman Wee Cho Yaw, who is Mr Wee's father, received up to $3 million last year, after the bank's remuneration committee proposed that he be paid an additional $2.5 million for his guidance to management, according to UOB's 2008 summary financial report.

The senior Mr Wee stepped down as chief executive on April 27, 2007, after 33 years. In 2007, his total pay was as much as $5.5 million. He remains chairman of UOB's remuneration committee (RC). Other RC members are independent directors Cham Tao Soon, Philip Yeo and Lim Pin.

A UOB spokeswoman said: 'Each member of the RC abstains from decisions as regards his own remuneration.'

As for Mr Wee Ee Cheong's pay, she said: 'The decision on the CEO's remuneration was arrived at by the RC.'

UOB's 2007 annual report noted that banking regulations required the chairman of the RC to be independent, but made an exception for incumbents.

'The board is of the view that Mr Wee Cho Yaw, a non-executive director who is the incumbent RC chairman, is the best person to chair the RC because of his vast experience in remuneration matters,' it said.

On the outlook for 2009, UOB will proceed cautiously and focus on reducing operating costs. Mr Wee said: 'We will also embark on a restructuring exercise to ensure we are well-positioned to move expeditiously when the crisis blows over.'

The spokeswoman said that the restructuring exercise aims to create and build a truly regional bank that offers all customers the best of UOB's capabilities across countries to extend its leadership position in consumer and SME business.

'We are integrating technology and operations to enhance efficiency and effectiveness across the region to better serve our customers. The restructuring exercise is still in progress,' she said.

This article was first published in The Business Times.