Royal Bank of Canada (RY.TO) increased CEO Dave McKay’s 2024 salary by 61% to C$24.5 million ($17.14 million), which includes a C$4 million bonus tied to the acquisition of HSBC Canada, according to a regulatory filing on Thursday.
Meanwhile, Laurent Ferreira, CEO of Montreal-based National Bank of Canada (NA.TO), saw his 2024 compensation rise by 34.6% to C$11.4 million following the bank’s acquisition of Alberta-based Canadian Western Bank.
RBC highlighted McKay’s leadership in navigating the “once-in-a-generation acquisition” of HSBC Canada for C$13.5 billion, along with his efforts to strengthen the bank’s existing operations. Meanwhile, National Bank’s acquisition of CWB supported its coast-to-coast expansion and the growth of its commercial banking business.
McKay’s compensation target for 2025 remains unchanged at C$17 million. The C$4 million stock award is tied to “strategic cost and earnings objectives” associated with integrating HSBC Canada.
Canadian banks, which have traditionally focused on expanding into the U.S., are now seeking growth opportunities at home, attracted by lower risk, better margins, and reduced operating costs.
Meanwhile, Bank of Montreal (BMO.TO) CEO Darryl White received his third consecutive pay cut after a challenging 2024. His total direct compensation for the year was C$9.6 million, marking a 14.2% decline from the previous year.
BMO faced credit issues in 2024, struggling with an uncertain economy and problematic loan books in the U.S. The bank’s stock gained 6.4% over the year, underperforming the 18% rise of the Toronto Stock Exchange’s S&P/TSX Composite Index (.GSPTSE). In contrast, shares of RBC and National Bank surged nearly 30% each.
“Over the past year, the global economy has faced ongoing challenges, though recent months have brought reasons for optimism. However, significant uncertainty remains, demanding careful and strategic management,” said board chair George Cope and CEO Darryl White.
(Source)