TORONTO – Most top executives at TD Bank (TSX:TD) saw their pay shrink last year, as the financial institution’s performance missed its own targets.
Retiring chief executive Ed Clark received $10.3 million in direct compensation, a decrease of four per cent from $10.75 million in 2012, the bank said in its proxy circular released on Thursday.
Chief operating officer Bharat Masrani was the only one from the bank’s top six executives to get a pay increase. His total compensation rose 13 per cent to $6.7 million.
Masrani took the new executive position mid-year as part of his transition into the CEO role when Clark retires in November.
“During the year, despite achieving record results, the bank did not achieve all of the financial and non-financial objectives that were established,” the bank said.
“In addition, the bank did not outperform peers in a manner consistent with prior years.”
Other executives like Tim Hockey, head of Canadian banking, saw his pay drop 1.5 per cent to $4.53 million, while direct compensation to chief financial officer Colleen Johnston fell 3.4 per cent to $2.95 million.
Clark will also receive a lifetime pension valued at nearly $2.5 million that “will continue unreduced to Mr. Clark’s surviving spouse for her lifetime following his death,” the bank said.
In 2013, TD Bank’s net income slipped to $6.66 billion from $6.47 billion a year earlier. Total revenue increased to $27.26 billion from $25.55 billion.
Adjusted earnings per share fell short of the bank’s expectations, rising 0.4 per cent for the year to $7.45 per share. The bank had an annual growth target of seven to 10 per cent.
Last month, Royal Bank (TSX:RY) reported that chief executive Gord Nixon received a pay increase of about one per cent to $12.7 million in 2013.