Bank of Montreal chief executive officer Bill Downe took a pay cut in 2012, after the bank missed a number of financial targets tied to his compensation.
The CEO of Canada’s fourth-largest bank made $9.2-million in total compensation last year, according to the bank’s management circular made public on Friday. That represented a drop of about 7 per cent in compensation from the year before, when Mr. Downe made slightly less than $9.9-million.
For the year, Mr. Downe made $1.25-million in salary and received $6.95-million in shares and stock options. He also received a $1-million bonus, and about $12,500 in additional compensation.
In the regulatory filings, BMO said the bank was happy with the CEO’s performance, but its results fell short of the targets set out for Mr. Downe at the start of the year. The bank missed targets for shareholder returns, adjusted revenue and adjusted operating leverage, BMO said.
“The board was very pleased with Mr. Downe’s leadership this year. … The bank, however, fell short against the performance measures established for the incentive pools,” the bank said in its management circular.
Bank CEOs usually see their salaries rise, but 2012 was a mixed year in the executive suite. Royal Bank of Canada CEO Gord Nixon saw his compensation jump 25 per cent, to $12.6-million. Bank of Nova Scotia CEO Rick Waugh’s pay rose about 5 per cent to $11.1-million. However, Toronto-Dominion Bank CEO Ed Clark took a 4-per-cent pay cut to $10.9-million.