Ed Clark was again Canada’s highest-paid bank executive last year, but Toronto-Dominion Bank’s board of directors decided against giving the chief executive officer a raise in 2011.
Citing “the current economic outlook,” the bank decided to hold Mr. Clark’s total direct compensation at $11.28-million, about the same as in 2010, according to regulatory filings made public Thursday.
TD, Canada’s second-largest bank by assets, said Mr. Clark would have been eligible for a 6-per-cent raise under his compensation formula, which is based on the bank’s performance. “However, the committee considered the current economic outlook and external environment in maintaining compensation at 2010 levels.”
Mr. Clark’s total compensation, which included $105,696 in additional perks and expenses, was $11.38-million, down slightly from $11.39-million in 2010. It included a 2011 base salary of $1.5-million and about $9.7-million in bonuses and options.
The bank said in statement accompanying its proxy circular that TD posted record profit in 2011, which factored into the CEO’s compensation.
“While we expect economic conditions in the markets in which the bank operates to remain challenging, the board has the utmost confidence that TD’s management will continue to deliver shareholder value,” TD chairman Brian Levitt said in the statement.
TD is the second bank to disclose executive compensation for 2011. Two weeks ago, Royal Bank of Canada reported that several of its executives took slight drops in pay last year, amid a bumpy period for the global banking sector.
RBC CEO Gordon Nixon made $10.1-million in total direct compensation in 2011, down 8 per cent from 2010, according to the bank's proxy circular.
At TD, the bank’s head of wholesale banking, Bob Dorrance, saw his total compensation drop slightly amid a turbulent year for global capital markets. Mr. Dorrance made $7.15-million in 2011, down from $8.1-million the year before.
Other top executives at TD saw their pay increase slightly. Tim Hockey, head of Canadian banking, auto finance, and credit cards at the bank, made $4.78-million in 2011, up from $4.56-million the year before. Bharat Masrani, head of U.S. retail banking, made $6.99-million, up from $6.34-million.
TD’s chief financial officer, Colleen Johnston, received total compensation of $3.25-million, up from $3.04-million in 2010.
TD reports first-quarter earnings on March 1, and will hold its annual meeting in Toronto on March 29.