Toronto-Dominion Reduces CEO Clark’s Pay to $10.7 MillionSean B. Pasternak
Toronto-Dominion Bank, Canada’s second-largest lender, awarded Chief Executive Officer Edmund Clark C$10.9 million ($10.7 million) in 2012, a 4.4 percent decrease from a year earlier.
Clark was given C$1.5 million in salary, C$5.03 million in share-based awards, C$2.5 million in option-based awards, C$1.73 million in non-equity incentive plans and C$134,192 in other compensation, the Toronto-based bank said today in a filing with Canadian regulators. Clark’s total compensation last year was C$11.4 million. All figures exclude costs to service pensions.
Toronto-Dominion said compensation was affected by litigation reserves tied to activities that occurred prior to its 2008 acquisition of Commerce Bancorp Inc.
“While these were not related to ongoing operations and resulted from customer relationships created in Commerce Bank before it was acquired by the bank, it was a significant financial expense,” the bank said in the filing. “The committee believed that it was appropriate to apply negative discretion to the results calculated under the plan for the CEO and other senior leadership of the bank.”
Toronto-Dominion had record adjusted profit of C$7.1 billion in the year ended Oct. 31. Clark, 65, told investors in March that he’s in his “final years” leading the bank.
Robert Dorrance, head of Toronto-Dominion’s wholesale bank, earned C$7.76 million, an 8.4 percent increase from a year earlier. Chief Financial Officer Colleen Johnston was awarded C$2.99 million, down 1.8 percent from the previous year.
Royal Bank of Canada, the country’s largest lender, disclosed Feb. 4 that it increased CEO Gordon Nixon’s compensation for 2012 by 25 percent to C$12.6 million.