Friday, February 23, 2007

2006 Compensation of Bank CEOs

Bloomberg, Sean B. Pasternak, 23 February 2007

Toronto-Dominion Bank, Canada's second-largest bank by assets, increased the pay of Chief Executive Officer Edmund Clark 3 percent last year after profit more than doubled to a record.

Clark received C$11.4 million ($9.85 million) in salary, bonus and stock options for the year that ended Oct. 31, according to a filing with regulators today. That compares with C$11.1 million in the year-earlier period. The bank also contributed C$515,000 to Clark's pension, compared with C$554,000, a year earlier.

Clark, 59, was the second highest-paid banker in 2006, after Royal Bank of Canada CEO Gordon Nixon, who received C$11.9 million. Toronto-Dominion's profit last year surged to C$4.6 billion from C$2.23 billion, led by a gain from selling a stake in its discount brokerage to TD Ameritrade Holding Corp.

Robert Dorrance, CEO of the TD Securities investment bank, was paid C$4.38 million in 2006, compared with C$4 million a year earlier. Chief Financial Officer Colleen Johnston, who started the job in November 2005, was paid C$2.4 million.

Toronto-Dominion is the last of Canada's six main banks to disclose executive compensation.
Bloomberg, Doug Alexander, 9 February 2007

Royal Bank of Canada, the country's largest bank, gave Chief Executive Officer Gordon Nixon a 25 percent raise to C$11.9 million ($10.1 million) in 2006 as earnings rose to a record.

Nixon, 50, received a salary of C$1.4 million, a bonus of C$5 million, and deferred shares and stock options valued at C$5.5 million, according to a filing today with Canadian securities regulators. That's up from C$9.5 million in fiscal 2005. The bank also contributed C$766,000 toward Nixon's pension plan, compared with C$620,000 a year earlier.

Royal Bank's profit rose 40 percent to C$4.73 billion in the year ended Oct. 31 and Nixon met six of his seven financial targets. He resumed the bank's U.S. expansion with five acquisitions last year, including Atlanta-based Flag Financial, American Guaranty & Trust, and 39 branches from AmSouth Bancorp.

Nixon was the highest paid CEO at a Canadian bank of the four that have reported full compensation. Bank of Nova Scotia paid Richard Waugh C$8.9 million, up 4.7 percent from the previous year. Bank of Montreal paid Anthony Comper C$8.1 million, unchanged from 2005, while National Bank of Canada cut compensation for Real Raymond by 7 percent to C$6.5 million.

Nixon's pay trails that of CEOs at similar-sized U.S. banks, such as US Bancorp. The Minneapolis-based lender paid chairman and former CEO Jerry Grundhofer total compensation of almost $18 million in 2005.

Royal Bank said Chief Operating Officer Barbara Stymiest earned C$4.55 million in total compensation, compared with C$4.2 million in the previous year. The bank contributed C$239,000 toward Stymiest's pension plan, up from C$179,000 a year earlier.

Charles Winograd, who heads the RBC Capital Markets investment bank, received C$10.4 million, up 73 percent from C$6 million in 2005. The bank contributed C$24,000 toward Winograd's pension, compared with C$21,000 in 2005.
Bloomberg, Sean B. Pasternak, 2 February 2007

Bank of Nova Scotia boosted the pay of Chief Executive Officer Richard Waugh by 4.7 percent last year after Canada's third-largest bank reported record annual profit.

Waugh, 59, received C$8.9 million ($7.5 million) in salary, bonus and stock options, the Toronto-based bank said today in a filing with Canadian securities regulators. That compares with C$8.5 million in the year-earlier period. Scotiabank also contributed C$553,000 to Waugh's pension, compared with C$533,000, a year ago.

Scotiabank increased earnings 11 percent to C$3.58 billion last year as the lender added to its international operations. The bank has spent about C$1 billion over the last year on acquisitions in Peru, Costa Rico and other areas.

Vice-Chairman and Chief Administrative Officer Sarabjit Marwah received C$3.48 million in total compensation last year, up from C$2.93 million a year earlier. Chief Risk Officer Brian Porter received C$3 million. His year-earlier compensation wasn't listed.

Scotiabank is the fourth of Canada's six main banks to report executive compensation for the year that ended Oct. 31. Bank of Montreal paid CEO Anthony Comper C$8.1 million, unchanged from the previous year, while National Bank of Canada cut the total compensation for CEO Real Raymond by 7 percent to C$6.5 million.
Bloomberg, Sean B. Pasternak, 26 January 2007

Bank of Montreal paid Chief Executive Officer Anthony Comper C$8.1 million ($6.87 million) in total compensation in 2006, unchanged from the previous year, after revenue growth was less than the bank expected.

Comper received a salary of C$1 million, a bonus of C$1.6 million, and shares and stock options valued at C$5.5 million, the Toronto-based bank said today in a regulatory filing. The bank also made C$845,000 in pension contributions to Comper.

Canada's fourth-biggest bank met four of its five financial targets, as profit rose to a record C$2.66 billion in Comper's last full year as CEO. Comper, 61, steps down March 1.

Revenue growth, excluding the 2005 sale of its U.S. online brokerage, was less than expected, the compensation committee said in the filing. The bank's ``relative performance was determined to be average'' after it exceeded the earnings per share target growth, the report said.

Chief Operating Officer William Downe, who will replace Comper, received $4.97 million in 2006, up from $4.9 million the year before, when he was head of the investment banking unit. Bank of Montreal also contributed $827,600 in pension costs.

Yvan Bourdeau, CEO of BMO Capital Markets, received C$6.5 million in total compensation, compared with C$5.5 million in the year-earlier period.

Chief Financial Officer Karen Maidment received C$3.15 million in salary, bonus and stock options, compared with C$2.97 million in 2005.
Bloomberg, Doug Alexander, 25 January 2007

Canadian Imperial Bank of Commerce, Canada's fifth-biggest bank, raised the salary of Chief Executive Officer Gerald McCaughey last year by 35 percent to C$1 million ($848,900) as profit rose to a record.

McCaughey's total compensation for the year ended October 2006, which may include cash bonuses and stock options, won't be determined until the end of this fiscal year, the Toronto-based bank said today in a regulatory filing. McCaughey had a 2005 salary of C$741,667 and total compensation of C$5.97 million.

CIBC reported a C$2.64 billion profit for the year as McCaughey, 50, pared expenses by cutting jobs and reducing rents and salaries as revenue growth slowed. The bank reached all but one of its financial objectives after missing a target for dividend payouts.

McCaughey currently holds 81,991 restricted and performance-based shares, valued at C$7.18 million at the end of October, according to the filing. McCaughey's employment contract states that all variable and equity incentives, excluding options, won't be determined until October.

The bank contributed C$365,000 to McCaughey's pension last year, about double the C$177,000 he received in 2005.

Brian Shaw, Chief Executive Officer of the CIBC World Markets investment bank, had total compensation of C$7.3 million last year, up from C$4.72 million. Chief Risk Officer Steven McGirr received C$4.88 million in total compensation, compared with a year-earlier C$3.76 million.

CIBC changed how it determines annual bonuses for a CEO in December 2005 to better reflect the executive's longer-term performance. Cash bonuses and restricted share awards for any fiscal year are determined by the board at the end of the following fiscal year.

The change was proposed by McCaughey, who became CEO after John Hunkin retired on July 31, 2005. A day after McCaughey took over, CIBC announced $2.4 billion in costs related to settlements of claims from investors of energy trader Enron Corp.
Bloomberg, Sean B. Pasternak, 24 January 2007

National Bank of Canada, the country's sixth-largest bank, decreased the compensation for Chief Executive Officer Real Raymond 7 percent to C$6.5 million ($5.5 million) in 2006, his last full year in the position.

Raymond, 56, received C$1 million in salary, C$4 million in stock options and other grants and a bonus of C$1.5 million, the Montreal-based bank said today in a regulatory filing. That compares with total compensation of C$7 million in the previous fiscal year.

National Bank had record profit of C$871 million, or C$5.13 a share last year because of higher fees from mutual fund sales and merger and acquisition advice. Raymond announced this month that he will leave the bank in June after more than three decades there.

Louis Vachon, the chief operating officer who will replace Raymond, was paid C$6.5 million in bonus and stock options, up from C$6.14 million a year ago. Vachon, 44, also served as head of the firm's National Bank Financial investment bank until July. The bank contributed C$124,000 to Vachon's pension, compared with a year-earlier C$55,000.

Raymond accumulated a pension of C$16.5 million as of Oct. 31, the filing said. The bank contributed C$451,000 to Raymond's pension, compared with C$395,000 in the year-earlier period.