The president and CEO of Royal Bank of Canada saw his total compensation decline in 2019, according to the bank’s proxy circular, released on Thursday in advance of RBC’s annual shareholder meeting.
David McKay earned a total of $13.7 million last year — down 5.5% from the $14.5 million in total compensation he earned in 2018. Despite the decline, McKay still earned more than the chief executives of Toronto-Dominion Bank and Bank of Nova Scotia did in 2019.
McKay’s total direct compensation was $12.8 million, which surpassed his target of $12 million by 6.4%. His direct compensation included $1.5 million in base salary, $2.6 million in short-term incentive (STI) awards, $6.9 million in performance deferred share units and $1.7 million in stock options.
McKay’s STI award was 16% above target, which the proxy circular attributed in part to RBC’s success in exceeding the objectives set for client satisfaction, risk management, strategy execution, and brand and talent management.
RBC earned $12.9 billion in 2019, up from $12.4 billion in 2018, reflecting “growth of 3.5% from last year in the face of challenging market conditions,” the circular noted.
RBC’s other executive officers made the following in 2019:
- Rod Bolger, chief financial officer, earned $4.3 million in total compensation, down from $4.4 million in 2018.
- Douglas Guzman, group head, RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, earned $7 million in total compensation, down from $7.5 million in 2018.
- Douglas McGregor, group head, RBC Capital Markets and RBC Investor & Treasury Services, earned $9.5 million in total compensation, down from $10.8 million in 2018.
- Neil McLaughlin, group head, personal and commercial banking, earned $4.9 million in total compensation, up from $4.5 million in 2018.
Six of RBC’s 14 board nominees (43%) are women. The bank also noted that 46% of its executives are women and 19% are visible minorities.
RBC is facing two shareholder proposals this year, both of which the bank advises voting against.
- A request that the bank inform shareholders of the investments it makes in information technology over the next five years.
- A request that the bank set a diversity target of more than 40% for the composition of its board of directors for the next five years.
Shareholders also withdrew two proposals: one related to addressing human rights risks posed by two migrant detention facilities in the U.S., and one related to compensation policies.
RBC will hold its annual shareholder meeting on April 8, 2020.