Tan Teck Long at the Helm: OCBC's Test of Strategy and Stability

Tan Teck Long’s appointment as CEO of OCBC on January 1, 2026, marks a defining moment for Southeast Asia’s second-largest bank by assets. The 56-year-old executive faces an intricate challenge: transforming a century-old institution while managing the expectations of its most influential stakeholder—the Lee family, whose $38 billion fortune is substantially tied to OCBC’s fortunes.

Since OCBC’s formation in the early 1930s, the Lee family has maintained a protective grip over the bank. Today, they control 28% of shares, generating over $1 billion in annual dividends that support extensive philanthropic initiatives. This ownership structure has shaped OCBC’s identity as a fiscally disciplined, risk-averse institution—a virtue in stable times but potentially a liability in an increasingly competitive market.

The Weight of Legacy: How the Lee Family Shapes OCBC’s Direction

The Lee family’s approach to governance distinguishes OCBC from its rivals. While DBS Group acquired Citigroup’s Taiwan retail banking business in 2023 and expanded aggressively into China and India, OCBC declined similar opportunities. United Overseas Bank completed a $3.6 billion acquisition of Citigroup’s Southeast Asia assets, yet OCBC remains on the sidelines.

Behind these decisions lies Lee Tih Shih, the family’s sole board representative since his father’s death in 2015. Now 62, Lee serves as chairman of the board executive committee—a role unusual for family-controlled banks in Singapore. At peer institutions like DBS and United Overseas Bank, this committee reports directly to the board chairman. Lee’s dual responsibilities reflect the family’s deep involvement in strategic oversight.

The family’s caution has real consequences. In recent years, they rejected funding for two major initiatives: a S$2 billion (approximately $1.57 billion) headquarters renovation and a privatization offer for Great Eastern Holdings, OCBC’s 87% subsidiary. Despite senior management advocacy, both projects were deemed insufficient in returns to justify the capital outlay. “The Lee family prioritizes wealth preservation over aggressive expansion,” explained Gerard Lee, former head of OCBC’s investment division and a non-executive chairman at Arabesque AI. “It’s a philosophical difference between old-money families and market-driven competitors.”

Competitive Pressure: When Caution Becomes a Disadvantage

The financial performance gap between OCBC and DBS illustrates the strategic challenge Tan Teck Long inherits. Over the past five years, DBS delivered a 27% annualized total return, compared to OCBC’s 22%. The market capitalization gap has reached record levels, signaling investor preference for DBS’s more dynamic strategy.

Dividend policy reflects similar divergence. OCBC currently yields 3.8%, trailing DBS’s 4.8%. During Helen Wong’s tenure as CEO, OCBC raised its payout ratio to 60% for 2024-2025, alongside a S$2.5 billion capital return. However, analysts estimate DBS may exceed 70% in 2025, intensifying shareholder pressure on both fronts.

Yupana Wiwattanakantang, an associate professor of finance at the National University of Singapore who studies family businesses, warns that organizations like OCBC face a strategic fork: “The family must choose between deep involvement in operations, passive holding through a family office structure, or complete exit. Reluctant participation doesn’t function in the fiercely competitive banking sector.”

The Great Eastern Saga: A Cautionary Tale of Misaligned Interests

No episode better illustrates OCBC’s strategic paralysis than the protracted Great Eastern acquisition attempt. For over two decades, OCBC has pursued privatization of Great Eastern, hoping to integrate its S$100 billion+ in assets into wealth management operations, reduce listing costs, and streamline governance.

Yet resistance from minority shareholders—including distant Lee family relatives—has repeatedly derailed progress. Most recently, in July 2025, OCBC withdrew its fourth takeover attempt after raising its offer to S$1.4 billion for a 12% stake, still falling short of minority demands by at least S$230 million. The ongoing dispute created visible tensions at shareholder meetings and reportedly strained relationships between the previous CEO Helen Wong and non-executive chairman Andrew Lee, who championed the effort.

Wong’s departure on December 31, 2025, was attributed to family reasons, yet sources suggest frustration over the failed transaction contributed to her decision to step down. “The Great Eastern situation exposed fundamental tensions between shareholder preferences and management’s strategic vision,” noted Bloomberg Intelligence analyst Rena Kwok. “It also consumed considerable executive attention over two decades.”

Tan Teck Long’s Mandate: Bridging Strategy and Stakeholder Management

Tan Teck Long brings formidable credentials to the role. During his three years leading OCBC’s wholesale banking division, he delivered robust revenue growth and substantially improved credit review processes. His background includes nearly three decades at DBS, where he spent five years serving the country’s largest corporate clients in DBS China, building multilingual capabilities and sophisticated market understanding.

Upon assuming office, Tan Teck Long signaled ambition. “Our next chapter of growth is filled with opportunities,” he told Bloomberg. “Transformation sits at OCBC’s core, with a culture of innovation and growth deeply embedded across all levels.” He outlined plans to deepen presence in Singapore, Malaysia, Indonesia, and Hong Kong—OCBC’s established strongholds—while emphasizing integration of artificial intelligence, digitalization, and data capabilities to accelerate value creation.

His immediate task involves articulating a capital allocation strategy following the Great Eastern failure. As of September 2025, OCBC held S$2 billion in excess capital, presenting both opportunity and pressure. Chief Financial Officer Goh Chin Yee, drawing on 38 years of banking experience, stated the bank will “explore additional methods to further optimize our robust capital base.”

The Central Question: Can Tan Teck Long Secure the Lee Family’s Support?

Tan Teck Long’s predecessor, Tan Su Shan—who became DBS’s first female CEO in March 2025—achieved impressive results despite structural advantages at Temasek-backed DBS. Matching or exceeding that performance while respecting Lee family preferences will test Tan Teck Long’s strategic acumen and political sensitivity.

Multiple sources confirm that major OCBC decisions still require Lee family approval. According to two insiders, it was Lee Tih Shih who personally recruited Tan Teck Long from DBS, offering the promise of future leadership. The appointment suggests potential alignment: a CEO with proven execution capability paired with a board committed to measured expansion.

Yet questions linger. “With so many long-tenured executives surrounding him, driving transformational change will prove difficult,” Gerard Lee cautioned. “The Lee family must signal whether they’re prepared to embrace growth-oriented strategy or maintain their preservationist stance.”

OCBC’s financial results, released in the coming weeks, will provide the first concrete test of Tan Teck Long’s vision. Whether he can negotiate the tightrope between stakeholder expectations—maintaining the dividend discipline that has defined OCBC while simultaneously investing in competitive capabilities—will determine whether his tenure becomes transformational or merely stewardship of an established institution.