[SINGAPORE] Piyush Gupta is back at the heart of Singapore’s listed corporate scene. The 65-year-old, who left DBS in late March after serving as chief executive officer for more than 15 years, became non-executive deputy chairman of Keppel on Tuesday (Jul 1).
After spending some months getting an in-depth understanding of Keppel, might Gupta step up as the global asset manager and operator’s chairman?
Keppel’s current chairman Danny Teoh has been in his position since April 2021 and on the group’s board since October 2010. Teoh spent 27 years with professional services firm KPMG in Singapore where he held various senior positions.
Gupta becoming chairman will be a major coup for Keppel.
A CEO’s sounding board
For one thing, Gupta led DBS to new heights. As a successful former CEO of a major listed group, he could be of invaluable help to a company’s CEO if he leads the board as non-executive chairman.
A CEO occupies a lonely space. Subordinates might be guarded in the feedback they give a CEO. Family and friends can mean well but may be of little help in offering business and management advice. And the value-add of costly management consultants is questionable.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
On the other hand, a former CEO who spent many years in the trenches could be a great asset to a serving CEO by offering useful insights and frank feedback on a myriad of internal and external issues that confront the company’s leader.
Second, a board plays a vital role in shaping a company’s strategic path. Getting strategy right and adjusting strategy periodically matter, especially amid much business uncertainty and disruption. After all, a business prospers by operating where it has a competitive edge and enjoys tailwinds.
Gupta is well-regarded as a strategic thinker. Thus, expect a Gupta-led corporate board to be adept at crafting and refining business strategy in choppy conditions.
Founded in 1968, Keppel has seen huge transformation through the years. Today, the group seeks to address some of the world’s most pressing needs arising from the energy transition, rapid urbanisation and increasing digitalisation. A strategic thinker such as Gupta can contribute hugely to the above efforts.
Third, relationships and networks have enormous intangible value in the business world. As a reputable former banker, Gupta can leverage a powerful set of relationships across Asia and beyond to help Keppel.
For example, he might open doors for the company’s management that lead to new business opportunities or allow it to access the right people to help it fight a crisis.
Moreover, a seasoned former CEO who goes on to chair a corporate board is well-placed to provide inputs on dealings with various stakeholders, including business partners, policymakers, regulators and green advocates.
Fourth, Keppel is keenly focused on building up investment platforms such as private funds and listed real estate and business trusts.
With his banking experience, Gupta has plenty to offer to Keppel as the group competes to attract investors’ funds to manage.
While many investors are looking to work with credible asset managers, competition for funds to manage can be stiff. A Keppel led by a CEO with a strong fund management background in Loh Chin Hua and backed potentially by a chairman with a stellar banking background in Gupta will be formidable in drawing investors’ funds.
CEO succession
Fifth, Loh, who is 63 as at the latest annual report, has been Keppel’s CEO since January 2014. If he hands over the CEO reins soon, a chairman such as Gupta can help mentor a new CEO, especially a younger one, and support the new leader in establishing traction with stakeholders.
As a long-serving CEO who smoothly handed over the reins to a younger successor, Gupta could also offer useful tips to Loh on passing over the CEO reins at Keppel.
In addition, Gupta is a familiar face to many major institutional investors and someone, given what he achieved at DBS, who likely enjoys much goodwill with Keppel’s major shareholder, state investor Temasek. Many retail investors will be familiar with and fond of Gupta too.
Sixth, 65-year-old Gupta can probably contribute at least several years or more as an energetic non-executive chairman of Keppel, should he assume the role soon.
Sure, many listed groups here have a non-executive board chairman. Nonetheless, high energy levels are required of effective corporate boards given the ongoing upheaval in the world order and across many industries. And speedy decision-making may be required in periods of volatility.
A seasoned former CEO who has led a business with operations across multiple geographies and is in good health will likely possess the stamina to lead the board of a listed group with global operations and aspirations such as Keppel.
Long gone are the days when a company’s non-executive chairman largely performed ceremonial roles, such as cutting ribbons at opening ceremonies, or mainly helped uphold corporate governance standards.
As businesses face pressure to deliver good financial returns, an effective non-executive chairman of a company should be able to add value to the group’s financial performance.
While Gupta has retired from DBS, he wears many hats including that of chairman of Mandai Park and of Singapore Management University’s board of trustees.
Nevertheless, he likely has the capacity and, importantly, possesses the attributes to add much value to an ambitious listed Singapore company as non-executive chairman.
Gupta has set the bar for what a high-performing CEO here should deliver. In time, he may set the standard on what makes a top non-executive board chairman.
Keppel is fortunate to have Gupta join its board of directors. Shareholders may have even more to look forward to should he become the group’s non-executive chairman soon.
The writer owns shares in Keppel
