Royal Bank’s top five executives earned $45.6 million in total compensation value in its fiscal year ending October 2023.
This is an amount of remuneration in salaries and various bonuses increasing by 8% over one year. This gain was made despite the fact that the largest bank in Canada concluded its 2023 fiscal year with net profit down 4% to 16.86 billion, while its total revenues increased by 14.5% to 56.1 billion. and its assets grew by 4.5% to pass the threshold of 2,000 billion.
Alone, the president and CEO of the Royal Bank, Dave McKay, obtained total compensation estimated at 16.1 million, including 1.5 million in salary and 13.7 million in various stock bonuses, options and cash.
HAND-OUT PHOTO, THE RBC PRESS
Royal Bank President and CEO Dave McKay earned total compensation valued at $16.1 million, 77 times the average amount of total compensation among the bank’s 91,398 employees.
Mr. McKay’s total compensation in 2023 is therefore a slight decrease of 1.4% compared to the amount recorded in 2022. However, this slight decline is entirely attributable to a downward adjustment in the value of the specific pension plan of Mr. McKay, and while the total amount of salary and bonuses remained unchanged from one year to the next.
Furthermore, at an amount of 16.1 million in 2023, the total compensation of the president and CEO of the Royal Bank represents 77 times the average amount of total compensation among the bank’s 91,398 employees.
This calculation results from the total “Human Resources” costs which are recorded in the most recent annual report of the Royal Bank.
As for the four other senior executives of the Royal Bank whose compensation is explained in the management circular sent Thursday to shareholders, in preparation for their annual meeting on April 11 in Toronto, the largest amount of total compensation goes to Derek Neldner, who is CEO of the RBC Capital Markets group.
He got 10.5 million in total compensation in 2023, a significant increase of 23% from the previous year’s amount.
In addition, two other senior executives of the Royal Bank benefited in 2023 from compensation whose total value exceeded seven million.
They are Douglas Guzman, who received $7.5 million as CEO of RBC Wealth Management and RBC Insurance, as well as Neil McLaughlin, who received $7.2 million as CEO of banking services for individuals and businesses.