Bank CEO average pay tops $11M despite most missing performance targets

The Big Six have released management information circulars ahead of their AGMs

Low angle view of Skyscrapers in downtown Toronto during the day

The CEOs of Canada’s Big Six banks received an average $11 million in compensation last year, despite all but one failing to meet performance targets.

The total direct compensation for the CEOs range from RBC’s Dave McKay receiving $15.2 million, to Scotiabank’s Scott Thomson being paid $7.7 million.

McKay’s pay was above the board’s target of $14 million as bank performance exceeded expectations, a track record that has also led the board to bump up that target to $17 million for 2024.

Bharat Masrani, president and CEO of TD Bank Group, received $13.3 million in total compensation (about 11.5% below target). The TD board said Masrani demonstrated “excellent personal leadership and performance through a challenging year,” but cited the termination of the First Horizon transaction and “certain U.S. regulatory issues” for his reduced compensation.

CIBC chief executive Victor Dodig received $10.7 million in total compensation (about 2.7% below target), BMO chief executive Darryl White received $11.2 million (4.7% below), and National Bank of Canada’s Laurent Ferreira, made $8.5 million (3.0% below), as none of the banks met performance goals.

Thomson, who took on the combined role of president and CEO as of Feb. 1 last year, had a target of $8.7 million based on his starting date, or $9.5 million on a full-year basis.