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Gordon Nixon, CEO of Royal Bank of Canada, speaks to reporters following the company’s in Calgary.
Gordon Nixon, CEO of Royal Bank of Canada, speaks to reporters following the company’s in Calgary.
(JEFF McINTOSH/THE CANADIAN PRESS)

For RBC’s Gordon Nixon, compounding is the gauge of success

Royal Bank of Canada chief executive officer Gordon Nixon has a pretty simple answer when it comes to what the secret is to being a successful Canadian bank CEO: Compounding.

“However one does it strategically, if you can grow your bank at somewhere between 7 per cent and 10 per cent a year, basically your value doubles every five years,” he said in an interview looking back over his 12-year tenure at RBC, which he announced recently would end next year. “If you look at Royal Bank over the past 15 years, that’s exactly what we’ve done.”