Canadian bank CEOs received pay increases in 2024 — except for these two

Four of the six chief execs at Canada’s biggest banks received more compensation in 2024 as they were rewarded for meeting financial targets in a year marked by uncertainties linked to the United States elections and rising provisions for credit losses, but the heads of Toronto-Dominion Bank and Bank of Montreal saw their pay packages decline.

Dave McKay,Royal Bank of Canada‘s chief executive, saw his total pay jump to $25.9 million last year, up from $16.1 million in 2023. The increase included a $4-million “special performance-based equity award” linked to RBC’s acquisition of HSBC Holdings PLC’s Canadian operations, according to the bank’s proxy statement.

“McKay guided the bank through the once-in-a-generation acquisition of HSBC Canada, enhancing RBC’s existing Canadian businesses,” the bank said.

The award can be accessed in December 2027 and is conditional on progress being made with respect to RBC’s continued integration of HSBC.

Excluding the award, McKay’s total pay would have been $20.5 million, which is still significantly higher than what he was paid a year ago. This reflects aspects such as the banks’ record earnings and his “extraordinary efforts in creating long-term value for RBC’s clients, employees, communities … and shareholders,” RBC said.

While the head of Canada’s biggest bank received the largest increase in pay amongst the Big Six CEOs, the head of the second-biggest lender, TD Bank, saw the largest decline due to the lender’s issues with money laundering in the U.S. TD’s growth in the U.S. was restricted and the bank was also fined $3.1 billion by U.S. regulators.

The bank’s former chief executive, Bharat Masrani, didn’t receive a cash or equity incentive for fiscal 2024, which reduced his total