Toronto-Dominion Bank has become the second large Canadian bank to disclose executive compensation is going down. On top of that, its board of directors says it has decided that TD Bank President and Chief Executive Ed Clark would receive no raise for his 2011 service.
Earlier this month, several top-paid executives at Royal Bank of Canada, the nation’s largest financial institution, saw their 2011 compensation slide a bit as well, according to the bank's latest proxy circular. Overall compensation also dropped for the co-heads of RBC Capital Markets, Mark Standish and Doug McGregor, with their pay dropping to about $8.2 million from over $10 million the previous year.
Clark, meanwhile, remains Canada’s highest-paid bank executive last year—even without a raise.
Citing “the current economic outlook,” the bank decided to hold Mr. Clark’s total direct compensation at $11.28 million in Canadian dollars, which was about the same as in 2010, according to regulatory filings made public and reported on by the Globe and Mail. TD, which is Canada's second largest bank, said its CEO would have been eligible for a 6 percent raise under his compensation formula—which is based on the bank’s performance.
Interestingly enough, recruiter Janice Detta Colli, of Boyden, tells eFinancialCareers that the additional amount that Clark might have been paid had the board not intervened, estimated at $90,000, is nearly double what most Canadian citizens make in a year.
Of course, those in finance for many years and with graduate degrees make more—a Canadian finance manager with a master's degree and eight to 12 years of experience makes an average of around C$98,000, while a lower level financial advisor with a bachelor’s degree and one to four years experience makes about C$36,000 according the Web site Annualsalarysurvey.com.
Clark’s total compensation, which included $105,696 in additional perks and expenses, was C$11.38 million, down slightly from C$11.39 million in 2010, says the Globe and Mail, noting that the new figure included a 2011 base salary of C$1.5 million and about C$9.7 million in bonuses and options.
The bank said in a statement that TD posted record profit in 2011, and that this factored into Clark’s compensation.
RBC, meanwhile, released its latest proxy in early February.
As reported by Investment Executive's site, RBC chief executive, Gordon Nixon, saw his total compensation for the year tick down a bit to $11.2 million, from $11.85 million last year.
Nixon's base salary rose year over year from $1.4 million to $1.48 million, and the value of his share-based awards rose too, but the value of options awards and non-equity incentive compensation declined, taking down the overall total, according to the report.
At TD, the bank’s head of wholesale banking, Bob Dorrance, also saw his total compensation drop slightly amid a turbulent year for global capital markets, the Globe and Mail said, noting that Dorrance made $7.15 million in 2011, down from $8.1 million the year before.
Not all Canadian banking executives are taking home less, however: RBC’s Janice Fukakusa, chief administrative officer and chief financial officer, and Dave McKay, RBC’s head of Canadian banking, both reportedly saw their pay increase slightly from the previous year, to $4.5 million and $4.8 million, respectively.