Scotiabank Raises Waugh’s Pay by 4.6% to C$11.1 Million

Bank of Nova Scotia, Canada’s third-biggest lender, awarded Chief Executive Officer Richard Waugh C$11.1 million ($10.8 million) in total compensation last year, a 4.6 percent increase, as the bank posted record profit.

Waugh, 65, received C$1.5 million in salary, C$4.11 million in share awards, C$4.11 million in options, C$1.38 million in annual incentives and C$1,196 in other compensation, the Toronto-based firm said today in a regulatory filing. A year earlier, Waugh received C$10.6 million, excluding costs to service his pension.

Scotiabank’s profit last year was C$6.47 billion, an all-time high and a 21 percent increase from 2011. Waugh relinquished the role of president at the end of October to Brian Porter, the former head of international banking.

Michael Durland, co-CEO of the investment-bank unit, was awarded C$8.25 million, up 14 percent from a year earlier. His co-CEO, Stephen McDonald, 56, received C$5.4 million, a 4.9 percent increase.

Royal Bank of Canada, the country’s largest lender, said in February that CEO Gordon Nixon, 56, was awarded C$12.6 million in 2012. Toronto-Dominion CEO Edmund Clark, 65, got C$10.9 million.

Company Apology

Scotiabank apologized this week to its Canadian-based workers for the way changes to employee benefits were handled. The lender’s previous benefits plan, which hadn’t been significantly altered in 15 years “was not working,” according to spokeswoman Ann DeRabbie, as costs increased and employees weren’t being treated equally. She declined to be more specific about how the plan was changed.

“It is clear that we have made mistakes with the launch of the new ActiveFlex benefits program,” Waugh said in a memo to employees this week, a copy of which was obtained by Bloomberg News. “There have been unintended consequences as a result and, on behalf of the bank, I want to personally apologize to each of you for this.”

In the March 5 memo, Waugh said the firm plans to ask for input on potential adjustments to the plan.