BMO, CIBC Scotiabank execs missed bonus targets in 2023
The top executives at three of Canada’s biggest banks took home less than their target pay last year, according to new filings.
The fiscal year was marked by rising interest rates, the United States regional bank crisis, geopolitical uncertainty and increasing regulatory pressures. Those challenges influenced executive pay at the four largest lenders that have disclosed annual compensation so far — Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce.
Of the four chief executive officers, only Royal Bank’s Dave Mckay took home more than his target compensation in fiscal 2023. Here’s how compensation played out at those banks.
❚ Bank of Montreal’s Darryl White
Darryl White was paid $11.2 million in direct compensation, which includes salary, bonus and share- and option-based awards, below the board’s $11.8-million target. “Through the year greater instability in U.S. regional banking and more global economic uncertainty occurred than anticipated and BMO did not achieve its 2023 goals,” the bank said in its proxy circular.
Including pension amounts and non-cash benefits, White’s pay was $12.5 million, down from $14.3 million in 2022. ❚ Scotiabank’s Scott Thomson Scott Thomson officially stepped into the CEO role at Scotiabank on Feb. 1 last year and his compensation was pro-rated to reflect that. The board awarded him $7.7 million in direct pay, $1 million less than his target. His total compensation including pension and other benefits was $9.4 million.
The new CEO conducted a “comprehensive review” of the business last year and held more than 50 one-onone meetings with institutional investors, the bank said in its circular. Thomson unveiled a new strategy at an investor day in December.
“While earnings were below plan for the year,” the document said, “Mr. Thomson made key strategic decisions to establish the foundation needed to prepare the bank for its next phase of profitable, sustainable growth.”
❚ CIBC’S Victor Dodig Victor Dodig’s target for direct compensation was set at $11 million and CIBC’S board awarded him $10.7 million, reflecting the fact that the bank fell short of its financial targets.
His total compensation was up slightly from the previous year at $11.2 million.
CIBC announced an executive shuffle Thursday, including plans to move chief financial officer Hratch Panossian into an operating role as head of personal and business banking. ❚ Royal Bank’s Dave Mckay Dave Mckay received overall compensation of $16.1 million for the fiscal year ended Oct. 31, down slightly from a year earlier.
His direct compensation target was $14 million and the board awarded him $15.2 milliont.
Mckay’s short-term incentive payment for the year was 10 per cent lower than last year, “reflecting lower financial performance compared to target,” the bank said in the filing.