David McKay, president and CEO of Royal Bank of Canada, made $14.5 million in total compensation last year, according to the bank’s proxy circular released Thursday.
Toronto-Dominion Bank and Bank of Nova Scotia have already released their proxy circulars. Thus far, McKay has the second-highest CEO compensation, and TD’s CEO has the highest. RBC had the highest market cap of the Big Five banks for the period.
McKay’s 2018 total direct compensation was $13.5 million, which was 13% above his targeted compensation and a 9% increase from 2017. The board attributes this to, among other things, RBC maintaining its number-one market share in Canadian mutual fund assets under management and the success of the firm’s continued U.S. expansion.
His pension, perks and other compensation totalled approximately $1 million, bringing his total compensation to $14.5 million for fiscal 2018.
Douglas Guzman, group head of RBC Wealth Management and RBC Insurance, made $7.5 million in total compensation for fiscal 2018, up slightly from $7.4 million in 2017. The board noted that Guzman held RBC’s position as Canada’s largest retail fund company and largest full-service wealth advisory business. Further, Guzman “accelerated acquisition of new clients through launch of Premier Banking, increasing high-net-worth households, with 25% growth year-over-year.”
As for the other named executive officers:
- Rod Bolger, chief financial officer, made $4.4 million in total compensation in 2018, up from $3.7 million the year before.
- Douglas McGregor, group head, RBC Capital Markets and RBC Investor & Treasury Services, made $10.8 million in total compensation, the same amount as 2017.
- Neil McLaughlin, group head, Personal & Commercial Banking, made $4.5 million in total compensation, up from $2.9 million the year before.
The circular notes that 45% of RBC’s executives in Canada are women, and 22% of the firm’s group executive are women. Five of the 12 board nominees this year are women, or 42%.
RBC is facing two shareholder proposals this year, both of which the bank advises voting against.
- A request for the bank to disclose the equity ratio used by the compensation committee in its compensation-setting process.
- A request that the bank create a new technologies committee.
Shareholders also withdrew four shareholder proposals: three related to environmental issues and one related to workforce metrics.
Royal Bank’s annual general meeting will be held April 4, 2019.