Canada's five big banks outperformed most of their peers in 2008 amid a credit collapse and a global recession, but two leading executives announced pay cuts on Monday to show solidarity with investors.
Scotiabank chief executive Rick Waugh is to receive 7.5 million dollars (6.0 million US) in salary, bonus and other compensation for 2008, compared to 10.1 million (8.1 million US) the previous year, according to a proxy circular.
Gordon Nixon, chief executive of the Royal Bank of Canada (RBC), Canada's biggest bank, meanwhile will receive 8.75 million Canadian dollars (7.0 million US) in compensation or 20 percent less than in 2007.
Nixon will also "voluntarily forfeit" stock options and share units worth nearly five million dollars (4.0 million US), RBC said in a statement.
Chief financial officers and other executives at both banks also saw their paychecks slashed.
While relatively unscathed by the US subprime mortgage market collapse, Scotiabank missed its 2008 profit target and RBC posted lower earnings. Shares of each fell about 30 percent.
"I am proud of the accomplishments and the performance of RBC, especially relative to our global peers, but in light of the current state of global markets and the challenges faced by so many in Canada and around the world, I feel this decision is right for both me and the bank," said Nixon.
The Bank of Montreal, National Bank and TD Canada Trust awarded raises to their bosses, but TD froze client fees and cancelled a controversial new 35-dollar charge for inactive lines of credit.
Copyright 2009 AFP American Edition
