The President and CEO of the National Bank, Laurent Ferreira, received compensation of $9.3 million in 2023, which represents 79 times the average compensation within the Montreal institution.
The information is contained in regulatory documents sent to shareholders on Thursday.
Mr. Ferreira’s compensation represents nearly 79 times the average compensation of National Bank employees, an estimate made from data contained in the annual report.
The financial institution granted nearly 3.4 billion in salaries and benefits to its more than 31,000 employees during the 2023 financial year ended October 31. Spread over more than 28,900 full-time equivalents, the average remuneration would be $118,000.
Payroll increased by 5%, due to salary increases and an increase in headcount in fiscal 2023.
In 2023, Mr. Ferreira’s total compensation fell by 15% compared to last year, but the difference is attributable to an exceptionally higher contribution to his pension plan in 2022.
The boss of the National Bank does not receive his entire remuneration since part of it is deferred and will be paid later. He collected nearly $2.9 million in 2023, again according to the company’s circular.
The document also indicates that the value of the banker’s shareholder participation is equivalent to $24.4 million taking into account the National Bank shares held directly and the purchase options.
The board of directors wrote to shareholders that “Laurent Ferreira was able to deliver good results”. Its members judge that the strategy has made it possible “to perform in a complex economic context”.
The five highest executives obtained total compensation of $28.8 million in 2023. The comparison with last year provides little information since three executives had an exceptionally high contribution to their pension plan last year and that a leader was not in office in 2022.
In 2023, the company’s net income decreased by 1% to $3.3 billion. Adjusted diluted earnings per share fell 0.1%. Management aims to grow it by 5 to 10% in the medium term.
The 2023 financial year was marked by a context of economic slowdown which represented a headwind for the banking industry.
French and diversity
French is very present in the upper echelons of the Nationale. All nine members of senior management speak French. On the board of directors, this is the case for 12 out of 13 directors. 10 of them reside in Quebec.
“For information purposes, all meetings of members of senior management are held in French, and occasionally with passages in English,” writes the financial institution in the circular.
Senior managers are also in an equal zone. The council consists of 6 women and 7 men. Senior management, for its part, includes 5 women and 4 men.
The parity zone is not reached for all management positions. In total, 36.4% are women. The Nationale has set itself the objective of increasing this proportion to 39% by 2026.
Among senior managers, 9.3% belong to “a visible minority”. La Nationale wants to increase this proportion to 12% in 2026.