Canadian financial institution CEOs obtain pay hikes

Article content material

Four of the six chief execs at Canada’s largest banks obtained extra compensation in 2024 as they have been rewarded for assembly monetary targets in a yr marked by uncertainties linked to the United States elections and rising provisions for credit score losses, however the heads of Toronto-Dominion Bank and Bank of Montreal noticed their pay packages decline.

Article content material

Article content material

Dave McKay, Royal Bank of Canada‘s chief government, noticed his complete pay bounce to $25.9 million final yr, up from $16.1 million in 2023. The enhance included a $4-million “particular performance-based fairness award” linked to RBC’s acquisition of HSBC Holdings PLC’s Canadian operations, in line with the financial institution’s proxy assertion.

Article content material

“McKay guided the financial institution by means of the once-in-a-generation acquisition of HSBC Canada, enhancing RBC’s present Canadian companies,” the financial institution mentioned.

The award may be accessed in December 2027 and is conditional on progress being made with respect to RBC’s continued integration of HSBC.

Excluding the award, McKay’s complete pay would have been $20.5 million, which continues to be considerably greater than what he was paid a yr in the past. This displays points such because the banks’ file earnings and his “extraordinary efforts in creating long-term worth for RBC’s purchasers, staff, communities … and shareholders,” RBC mentioned.

While the pinnacle of Canada’s largest financial institution obtained the biggest enhance in pay amongst the Big Six CEOs, the pinnacle of the second-biggest lender, TD Bank, noticed the biggest decline as a result of lender’s points with cash laundering within the U.S. TD’s progress within the U.S. was restricted and the financial institution was additionally fined $3.1 billion by U.S. regulators.

The financial institution’s former chief government, Bharat Masrani, didn’t obtain a money or fairness incentive for fiscal 2024, which diminished his complete compensation by 89 per cent from 2023. The remaining members of TD’s senior government staff noticed their variable compensation diminished by at the least 25 per cent in 2024.

Article content material

Article content material

The financial institution, although, authorised a conditional award of US$2 million to its U.S. banking head, Leo Salom, contemplating the “vital function” he’ll play for remediating the financial institution’s anti-money laundering (AML) program. He may obtain the award in 2025 “topic to assembly AML remediation situations and milestones,” the financial institution mentioned in its proxy assertion.

BMO chief government Darryl White noticed his pay decline for a 3rd yr in a row, as he obtained complete compensation of $10.9 million final yr in comparison with $12.5 million in 2023 and $14.2 million in 2022. BMO had a tough yr by which it reported higher-than-expected provisions for credit score losses (PCLs) — the cash banks preserve apart to sort out doubtlessly unhealthy loans.

The financial institution’s PCLs elevated to $1.5 billion within the fourth quarter final yr from $627 million within the first quarter as shoppers struggled to pay again loans in a high-interest surroundings. The state of affairs appears to have begun bettering, with the financial institution posting a comparatively decrease PCL of $1.01 billion within the first quarter of 2025.

The head of Canadian Imperial Bank of Commerce, Victor Dodig, noticed his complete pay enhance to $13.6 million final yr — second-most amongst the Big Six CEOs — from $11.2 million in 2023.

Article content material

“Through Dodig’s management and continued execution of our financial institution’s client-focused technique, CIBC delivered for all of its stakeholders in 2024,” CIBC mentioned in its proxy assertion. “This included strong monetary efficiency … file income and internet earnings, whereas producing optimistic working leverage (on an adjusted foundation) for a second straight yr.”

With a complete pay of $12.07 million in 2024, National Bank of Canada chief government Laurent Ferreira obtained a 30 per cent enhance from his pay in 2023.

The financial institution, which accomplished the acquisition of the Canada Western Bank in February, mentioned Ferreira had “skilfully overseen the execution of the technique that ensures the financial institution’s differentiating place available in the market. His optimistic and fascinating management motivates the groups to pursue the financial institution’s progress.”

Bank of Nova Scotia chief government Scott Thomson’s complete pay elevated to $10.3 million final yr, from $9.4 million in 2023. Under his management, the financial institution mentioned it “efficiently laid the groundwork essential to execute” its imaginative and prescient and ship worthwhile progress.

Article content material

“He has ensured we’re disciplined in how and the place we allocate capital, investing in areas that may drive progress for the financial institution, whereas optimizing present capital in these markets which have seen decrease returns,” the financial institution mentioned in its proxy assertion.

• Email: nkarim@postmedia.com

Bookmark our web site and assist our journalism: Don’t miss the enterprise information it’s essential know — add financialpost.com to your bookmarks and join our newsletters right here.

Article content material