The chief executives of Canada91裸聊视频檚 five largest banks collectively earned roughly $63.2 million in total compensation during the 2018 financial year, up about 12 per cent from the previous year.
Based on the banks91裸聊视频� latest proxy circulars, Toronto-Dominion Bank91裸聊视频檚 chief executive Bharat Masrani received the highest overall pay for the 12 months ended Oct. 31, 2018 at $15.3 million in total compensation, which includes elements such as base salary, performance-based incentives and pension value.
That91裸聊视频檚 up roughly 23 per cent from Masrani91裸聊视频檚 $12.4 million in total compensation for the 2017 fiscal year, marking the biggest annual pay bump among the five bank chiefs.
The second-highest paid banking chief executive was Royal Bank of Canada91裸聊视频檚 Dave McKay, who saw an eight per cent pay increase to $14.5 million in total compensation, followed by Bank of Nova Scotia91裸聊视频檚 Brian Porter who received $13.3 million, up 3.2 per cent from the previous year.
The Bank of Montreal91裸聊视频檚 chief executive Darryl White received $10.1 million in total compensation in his first full year at the helm, up 22 per cent from fiscal 2017.
The Canadian Imperial Bank of Commerce91裸聊视频檚 chief executive Victor Dodig received roughly $10 million in total compensation in the 2018 financial year, up 6.5 per cent from a year earlier.
Excluding pension value and other miscellaneous compensation items, the five bank CEOs earned roughly $54.7 million in total direct compensation, up roughly 6.5 per cent from the 2017 financial year.
While a double-digit overall pay bump may make some bat an eye, the increase in compensation is reflection of the complexities in the financial sector that these CEOs face, said Bill Vlaad, president of financial services recruitment firm Vlaad and Co., which also monitors compensation trends.
The banking sector employs tens of thousands of people and each of the five financial institutions has a growing international presence, he said. What91裸聊视频檚 more, as more Canadians do their banking digitally, these banks are deploying more complex technology, Vlaad added.
91裸聊视频淭here91裸聊视频檚 a lot of pressure on these CEOs, more so than for a traditional CEO of an operational company,91裸聊视频� he said. 91裸聊视频淚 think that justifies a great deal of their compensation.91裸聊视频漈hese pay hikes came as the Big Five banks delivered a collective $43.2 billion in net income for the 2018 financial year, up nearly 7.2 per cent from the prior year. The banks continued to churn out profits despite worries over stricter mortgage lending rules and trade uncertainty.
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However, the volatility in equity markets last year also put pressure on the banks91裸聊视频� valuations. When comparing the share prices of each bank from the beginning of the 2018 financial year on Nov. 1, 2017 to the end on Oct. 31, 2018, the results are mixed. At one end of the spectrum, Scotiabank91裸聊视频檚 stock had slipped roughly 11.3 per cent during that period from roughly $78 to $70. RBC91裸聊视频檚 shares in that period slipped one per cent from $96 to $95. BMO and TD91裸聊视频檚 shares increased by roughly 3.6 and 3.4 per cent, respectively, to approximately $97 and $72 during that time frame. CIBC, at the higher end of the range, saw its shares increase from $107 to $112, or about 4.7 per cent.
Most of the banks outperformed the S&P TSX Composite Index during that period, which slipped roughly 6.25 per cent to 15,027.28 on Oct. 31, 2018.
91裸聊视频淎ny company can justify increases in compensation if the shareholders are also making return on their investments that well exceeds the market,91裸聊视频� said Vlaad.
Armina Ligaya, The Canadian Press
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