B Mirror Report: The Dhaka Stock Exchange (DSE) saw its net profit nearly halve in the 2024-25 financial year, while fees paid to its directors for attending board and committee meetings doubled.

According to DSE’s audited financial statements and board documents, the stock exchange’s net profit fell 49% year-on-year to Tk31.20 crore in 2024-25 from Tk61.29 crore in the previous financial year.

At the same time, its operating loss more than doubled, rising to Tk49.43 crore from Tk20.52 crore a year earlier.

Despite the weaker financial performance, DSE increased directors’ meeting fees from Tk10,000 to Tk20,000 per meeting—a 100% increase. The chairman’s monthly remuneration was also raised from Tk30,000 to Tk50,000.

DSE’s operating revenue declined from Tk127.24 crore in 2023-24 to around Tk101 crore in 2024-25, reflecting lower trading activity in the capital market.

The decline in transaction-related fees and other operating income came as several major expenses, including employee salaries, IT infrastructure maintenance and depreciation, continued.

As a result, DSE’s operating loss increased by about Tk28.91 crore, or 141%, during the year.

The exchange nevertheless remained profitable because of income outside its core operations. It earned Tk121.15 crore from interest and other income on fixed deposits, government treasury bonds and other investments.

This investment income helped offset the nearly Tk50 crore operating loss and allowed DSE to post a net profit of Tk31.20 crore.

The decline in profit was reflected in the dividend proposed for ordinary shareholders.

For 2023-24, DSE paid a 3.30% cash dividend, equivalent to 33 paisa for each share with a face value of Tk10. A total of Tk59.52 crore was distributed as dividends.

For 2024-25, the DSE board recommended a 1.70% cash dividend, or 17 paisa per share.

The proposed dividend is therefore 16 paisa lower per share, representing a reduction of about 48% from the previous year.

While shareholders are facing a lower dividend, DSE directors are set to receive higher meeting fees.

At its 1,102nd board meeting on 30 October 2025, the DSE board considered a recommendation from its Nomination and Remuneration Committee to increase directors’ remuneration.

Under the new arrangement, directors’ fees for attending board meetings were increased from Tk10,000 to Tk20,000 per meeting, excluding applicable VAT and taxes.

The higher rate also applies to meetings of various board committees, including the Audit and Risk Management Committee, Nomination and Remuneration Committee and Regulatory Affairs Committee.

The chairman’s monthly remuneration was also increased to Tk50,000 from Tk30,000.

The decisions were placed before shareholders for approval at DSE’s 64th annual general meeting.

According to DSE sources, the increase was recommended after considering the responsibilities and workload of directors. Their involvement in capital-market reforms, policy development and committee activities has increased, requiring more time and participation, the sources said.

DSE director Minhaj Mannan Emon said an independent director may spend three to four hours attending a board meeting, with travel time making it effectively a full-day commitment.

He said directors may attend one or two board meetings a month in addition to their other responsibilities.

“The Tk10,000 fee was fixed nearly 10 years ago. The economic reality has changed since then,” he said.

According to him, the increased remuneration could add around Tk70-80 lakh to DSE’s annual expenses.

The simultaneous decline in DSE’s profit and shareholder dividend and the increase in directors’ remuneration, however, has raised questions over how the exchange balances management expenses and shareholder interests.