On March 6, the Royal Bank of Canada increased CEO Dave McKay's 2024 salary by 61% to C$24.5 million ($17.14 million), which included a C$4 million bonus linked to the HSBC Canada acquisition, as reported in a regulatory filing on Thursday.
Laurent Ferreira, CEO of Montreal-based National Bank of Canada, saw a 34.6% rise in his 2024 compensation to C$11.4 million following the completion of the acquisition of Alberta-based rival Canadian Western Bank, the country's sixth largest bank.
RBC emphasized McKay's leadership in the "once-in-a-generation acquisition" of HSBC Canada and his efforts in strengthening RBC's existing operations. National Bank seized on opportunities to expand and enhance its commercial banking segment.
McKay's compensation target for 2025 remains at C$17 million, with the C$4 million stock award tied to "strategic cost and earnings objectives" related to integrating the HSBC Canada acquisition.
Canadian banks, traditionally expanding into the U.S., are now focusing on domestic growth, aiming for lower risk, improved margins, and operating costs.
In contrast, Bank of Montreal CEO Darryl White experienced his third pay cut in 2024 due to challenges. His total direct compensation for 2024 was C$9.6 million, a 14.2% drop from the previous year.
The bank faced credit issues amidst economic uncertainties and problematic loan portfolios in the U.S. BMO's stock saw a 6.4% increase in 2024, lagging behind the Toronto Stock Exchange's S&P/TSX composite index, which rose by 18%, while RBC and National Bank's shares each surged by almost 30%.
In a joint statement, board chair George Cope and White acknowledged global economic challenges over the past year and expressed cautious optimism going forward, noting the need for prudent management in the face of ongoing uncertainty.