New OCBC CEO's Balancing Act: Navigating Growth Ambitions Amidst a Cautious Founding Family
SINGAPORE (Financial Insights) — The ascent of Tan Teck Long to the chief executive role at Oversea-Chinese Banking Corp. (OCBC) marks a pivotal moment for Southeast Asia's second-largest bank. His most critical task, however, may not be in the market, but across the boardroom table: winning the confidence of billionaire Dr. Lee Tih Shih, whose family has been the bank's anchor shareholder for generations.
Sources close to the matter describe a founding clan with a deeply ingrained philosophy of capital preservation. The Lee family, which holds a 28% stake worth billions, has historically tempered OCBC's appetite for splashy acquisitions or major capital expenditures, prioritizing steady dividends and fiscal prudence. This conservative stance now presents a direct challenge for the new CEO, who is under pressure to accelerate growth and close the performance gap with archrival DBS Group Holdings.
"Tan is walking into a classic dilemma," observes Michael Tham, a veteran Singapore banking analyst. "The market is screaming for transformative deals and higher returns, while the principal shareholder's primary interest has been wealth preservation and funding philanthropy through reliable dividends."
This tension has scuttled ambitions before. Insiders note that several recent initiatives, including a major headquarters renovation and a renewed push to take subsidiary Great Eastern Holdings private, stalled after the family baulked at the price tags. The failed S$1.4 billion bid for Great Eastern's minority stake in July—the fourth such attempt—ultimately preceded the December departure of former CEO Helen Wong.
Dr. Lee, 62, a Yale-educated medical professor who leads the board's executive committee, declined to comment. His influence is undeniable; it was he who personally recruited Tan from DBS with the prospect of the top job. The family's legacy is the bank's bedrock: Lee's grandfather, Lee Kong Chian, helped forge OCBC through a 1930s merger, and the stake has been the family's crown jewel ever since.
Yet, the Lees have been reluctant bankers. Lee Tih Shih joined the board out of duty, not passion, balancing it with his neurology research. His father, former CEO Lee Seng Wee, once took the helm "reluctantly" to ensure continuity. This arm's-length involvement creates a unique dynamic. "Reluctant participation doesn't work—banking is a fiercely competitive industry," says Professor Yupana Wiwattanakantang of the National University of Singapore.
The reaction from observers is mixed. Sarah Lim, a portfolio manager with holdings in both OCBC and DBS, offers a measured view: "Tan has a strong wholesale banking track record. If he can articulate a clear, compelling strategy for organic growth in core markets like Indonesia and Hong Kong, he might not need a mega-deal to win over both the family and investors."
A more pointed critique comes from Rajiv Menon, an independent governance consultant: "This is a textbook case of shareholder overreach stifling ambition. The Lee family treats OCBC like a private trust fund, not a publicly listed competitor in a cutthroat market. While DBS and UOB are making bold moves, OCBC is hamstrung by boardroom nostalgia. Tan might be the new CEO, but is anyone truly in charge?"
In his response to inquiries, Tan struck an optimistic tone, stating the board is supportive and the team is "galvanized." He highlighted plans to "double down" on core markets and embed AI and digital capabilities. The bank's excess capital, estimated at S$2 billion, provides a war chest, but its use requires family blessing.
As OCBC prepares to report earnings, the financial community watches closely. Tan's predecessor delivered robust profits and raised dividends, yet OCBC's yield remains below DBS's, and its market value gap has never been wider. The new CEO's tightrope walk has just begun: driving a modern banking transformation while respecting the cautious legacy of the family that built the institution.