More

Canada Bank CEO Earnings: Louis Vachon, National Bank Head, Costs The Most Per Dollar Earned

The Huffington Post Canada  |  By Posted: 04/ 5/2012 1:40 pm Updated: 04/ 5/2012 1:40 pm

Louis Vachon may be the head of Canada's smallest major bank, but he takes home the most pay relative to what the banks earn.

Bloomberg News noted the discrepancy in a story Thursday, reporting that Vachon, CEO of the National Bank of Canada, earned $7.5 million in 2011. That's less, in absolute terms, than what the CEOs of the other major banks earned, but in terms of bank profits, Vachon takes home the most.

National Bank earned $1.2 billion in net income in 2011, or $162.27 in profit for every dollar paid to Vachon. Every other bank CEO earns many times that, in terms of profits.

The other banks got much more bang for their buck from their CEOs, with RBC earning $480.40 for every dollar it paid its CEO, and TD earning $517.45 for every dollar it paid its CEO, according to Bloomberg's calculations.

TD's Ed Clark earned the most overall of all bank CEOs last year -- $11.5 million -- but because the bank's huge net income of $5.67 billion last year, Clark was still the best bargain, dollar for dollar, among bank CEOs.

According to HuffPost's calculations, CIBC's Gerry McCaughey brought in $326.32 for every dollar he earned (on $3.1 billion in earnings), and Scotiabank's Rick Waugh brought in $501.71 (on $5.3 billion in profit).

Check out the slideshow below to see what the CEOs of Canada's six major banks earned, and what they brought in for every dollar they took home in pay.

Loading Slideshow...

  • What Canada's Bank CEOs Earned Last Year

  • 6. Louis Vachon, National - $7.5 Mln

    <strong>Profit per dollar earned by the CEO: $162.27</strong> National Bank's Louis Vachon took home $7.5 million, the lowest total of any of the six major banks, but the most in terms of the bank's net income.

  • 5. Gerry McCaughey, CIBC - $9.5 Million

    <strong>Profit per dollar earned by the CEO: $326.32</strong> Gerry McCaughey's total compensation grew 12 per cent, to $9.5 million, in 2011. Source: <a href="https://www.cibc.com/ca/pdf/investor/proxy2012.pdf" target="_hplink">CIBC Management Proxy Circular</a>

  • 4. Bill Downe, BMO - $9.9 Million

    <strong>Profit per dollar earned by the CEO: $330.81</strong> Bill Downe's total compensation for 2011 was up 4.2 per cent from his 2010 pay of $9.5 million. Source: <a href="http://ca.reuters.com/article/businessNews/idCATRE81Q1W320120227" target="_hplink">Reuters</a>

  • 3. Gordon Nixon, RBC - $10.1 Million

    <strong>Profit per dollar earned by the CEO: $480.40</strong> Gordon Nixon's total compensation fell 8 per cent in 2011, to $11 million. Source: <a href="http://www.rbc.com/newsroom/2012/0206-proxy.html" target="_hplink">RBC Management Proxy Circular</a>

  • 2. Rick Waugh, Scotiabank - $10.6 Mln

    <strong>Profit per dollar earned by the CEO: $501.71</strong> Waugh's total earnings for 2011, at $10.6 million, were down slightly from the $10.66 million he earned in 2010. Source: <a href="http://www.thestar.com/business/article/1137400--scotiabank-ceo-s-pay-down-slightly-from-2010" target="_hplink">Toronto Star</a>

  • 1. Ed Clark, TD Bank - $11.3 Million

    <strong>Profit per dollar earned by the CEO: $517.45</strong> Ed Clark's total compensation for 2011 was meant to be around $12 million, but the bank's board scaled it back to $11.3 million -- roughly the same as in 2010. Source: <a href="http://www.thestar.com/business/article/1135817--td-bank-ceo-ed-clark-s-pay-down-to-11-3-million-in-2011" target="_hplink">Toronto Star</a>

FOLLOW CANADA BUSINESS

Louis Vachon may be the head of Canada's smallest major bank, but he takes home the most pay relative to what the banks earn. Bloomberg News noted the discrepancy in a story Thursday, reporting tha...
Louis Vachon may be the head of Canada's smallest major bank, but he takes home the most pay relative to what the banks earn. Bloomberg News noted the discrepancy in a story Thursday, reporting tha...
Related News On Huffington Post:
 

 
 
  • Comments
  • 10
  • Pending Comments
  • 0
  • View FAQ
Post Comment Preview Comment
To reply to a Comment: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to.
View All
Favorites
Recency  | 
Popularity
photo
Puffy Candy
11 Fans
12:05 AM on 05/16/2012
The amount some of these individual mades per day equals to some people per month! Why I am not inspired?
Permalink  |
photo
Lee Shabber
0 Fans
05:54 PM on 05/01/2012
THERE are a lotta money to go around..from the beginning of banking days in the early days....
Lets see a ROLL back of INTERESTS as TIMES are bad for our Customers!!!!

OR is it business as usual................................let the BANKS make more PROFITS off the BACKS of the working class=99% women and babies...

WHO R the POLITICIANS really working for..

U remember Flaherty DID not SLASH the high Interest RATES on CREDIT CARDS payments in 2009 BUDGET
Permalink  |
photo
jaded101
22 Fans
07:22 PM on 04/05/2012
I don't begrudge any of the bank executives (except the BMO ones). The amount they all earn is huge, but at least they are not doing what the wall street execs did to the average person. I make an exception with BMO -- (1) from my professional experience re their huge hodgpodge mortgage fraud case in Calgary, I can attest to the US unfair deep-pocket litigation style they employ, often against innocent people and just as often destroying careers and lives, and (2) white collar execs in other industries (oil, mining etc) who have nothing to do with the BMO fraud case but only as a result of being exposed to it due to the publicity, nevertheless opine/confide about their feelings regarding the rot within that company and/or their attitude that they won't do business with a company that actually advertises mortgage frauds that even BMO alleges their own officers participated in. Many execs and other professionals in the know have either stopped doing business with BMO or have declined to send new business its way. As long as a bank is making money honestly, I can't really rally against the salaries and bonuses and if I did have a problem with it, I'd bank with other institutions.
Permalink  |
This user has chosen to opt out of the Badges program
photo
Jessen Joseph
84 Fans
05:45 PM on 04/05/2012
You're Richer Than You Think
Permalink  |
photo
HUFFPOST SUPER USER
Scooterish
Please pass the meat!
488 Fans
 
05:17 PM on 04/05/2012
Are credit unions any better? Or my mattress?
Permalink  |
georgee2
My Canada Includes Everyone
111 Fans
04:58 PM on 04/05/2012
This is why bankers are so hated. It is obscene!!!
Permalink  |
eumen17
1 Fans
03:24 PM on 04/05/2012
personally I believe these compensation levels are obscene and not rational.
Permalink  |
wheelzroller
39 Fans
 
02:14 PM on 04/05/2012
" and these Bank executives get an expense account on top of their salaries, plus perks ,
( cars , corporate airplanes etc, etc ) "

I asked my own bank, as well as others,: What do I get in return for placing my hard earned money in the confines of your organization ??? In return I receive dumb looks and laughs.

My own bank had a sign on the wall that proudly stated that I was a valued customer, so I asked : How much do you really value me as a customer, when I never ever receive any
service for free ??? Again with the laughs and another dumb look from the manager, as she promptly hurried away from me.
Permalink  |
huffffnpuffff
62 Fans
05:39 PM on 04/05/2012
You've got to be kidding. You want bankers to provide service for free? Do you do that? (Assuming you don't see your "contribution" here as a service)
Permalink  |
Leftysam
84 Fans
06:42 PM on 04/05/2012
I a least expect a kiss when I am getting it up the wahzoo
Permalink  |