RBC CEO made $14.5 million in 2018

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.

Gender diversity

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%.

Shareholder proposals

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.

Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.