UNITED Overseas Bank's Mr Wee Ee Cheong, who took on the chief executive (CEO) role last April, saw his pay rise by about 60 per cent to as much as $6.25 million last year.

His father Wee Cho Yaw took a pay cut of about 40 per cent after he stepped down as CEO in favour of his son, according to UOB's annual report released yesterday.

The new CEO's pay for the year ended Dec 31 was in the range of $6 million to $6.25 million. This compares with the $3.75 million to $4 million he earned in 2006 as deputy chairman and president.

About 82 per cent of last year's package came from bonuses, with 13.3 per cent from basic salary.

UOB's net profit was $2.1 billion, 12.1 per cent up on the previous year, excluding a one-time gain in 2006.

The elder Wee, who remains as UOB's chairman, earned between $5.25 million and $5.5 million last year, down from $9 million to $9.25 million in 2006.

He received a basic salary, allowances and a pro-rated performance bonus for his role as CEO from Jan 1 to April 26, at which point his son took over.

After that, Mr Wee Cho Yaw continued to 'provide invaluable guidance...drawn from his vast experience, and expertise acquired over more than 40 years with the bank', said UOB in the report.

The bank's remuneration committee has proposed that he be paid an additional annual fee of $3 million. Since this is pro-rated for the period from last May to December, he would receive $2 million.

This proposal will be put to shareholders for approval at the annual general meeting on April 27.

While Mr Wee Cho Yaw was the highest-paid local bank executive in 2006, former DBS boss Jackson Tai and chief operating officer (COO) Frank Wong earned the largest pay packets last year.

Mr Tai, who stepped down as CEO last December, and Mr Wong, who retires this year, were each paid between $7 million and $7.25 million. This was down from the $7.5 million to $7.75 million they each earned in 2006, reflecting the bank's subdued performance last year when DBS turned in flat earnings of $2.28 billion.

Mr Wee Ee Cheong's pay was on a par with that of OCBC Bank CEO David Conner, who earned between $6 million and $6.25 million last year. This was about 25 per cent more than in 2006.