By James Langton

(January 24 – 18:20 ET) – Bank of Montreal is making an effort to better align the interests of its executives and shareholders.

According to the bank’s new proxy circular, BMO has implemented mandatory stock ownership guidelines for its senior executives. “We believe that the bank’s executive officers should hold significant ownership in the bank,” says the circular. To that end, the bank has implemented guidelines which are being phased in over three years.

The guidelines stipulate minimum stock holding requirements which are proportional to the executive’s compensation and position in the bank. The minimum required holdings are four times salary for the CEO, three times salary for vice chairs and presidents, two times salary for executive vice presidents, 150% of salary for senior vice presidents and 100% of salary for vice presidents.

Meanwhile, salary becoming a dwindling component of executive compensation at the bank. BMO Nesbitt Burns CEO Jeff Orr, for example, received just $300,000 in salary for 2000, but he picked up $4.5 million in bonus pay. Orr also received another $475,000 in restricted share units and 62,000 options.

BMO CEO Tony Comper picked up $900,000 in salary in 2000, along with a $1.4 million bonus, $850,000 in restricted units, and 204,000 options.