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Pay-for-Performance Guidelines |
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Corporate
Governance and Corporate Responsibility are two significant issues in
North American business. Underlying these concepts is the relationship
of Executive Compensation to Corporate Performance.
Executive
Compensation data follows the guidelines of the appropriate filing
exchanges and other regulatory agencies (the SEC and OSC).
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The
3XCD Executive Compensation and Pay-for-Performance database compares
publicly listed companies traded on the New York Stock Exchange (NYSE),
American Stock Exchange (ASE), National Association of Securities
Dealers Automated Quotations (NASDAQ), Over-the-Counter (OTC), Toronto
Stock Exchange (TSX) and wholly-owned subsidiaries required to file with
the appropriate Securities and Exchange Commission.
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The
current profile is based on absolute and comparative financial results
for the last completed fiscal year. Where necessary these results have
been standardized to a calendar year basis for relative comparison.
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Linking
financial and compensation performance periods is critical in
pay-for-performance determination. Companies with a fiscal year end
between June 1st and May 31st have been grouped within the same
performance period. This matches Standard and Poors' annual financial
data period.
e.g. if a company has a May 31st, 2005 fiscal year
end it is captured inside the fiscal year of 2004.
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Company Pay-for-Performance Results |
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Peer
Group determination is essential for comparative pay-for-performance
analysis. The Peer Group is determined by 3XCD and shared with the Board
before analysis is commenced. If this process is not possible a
“Standard Peer Group” is selected by 3XCD and used as the basis for this
analysis.
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BANK OF MONTREAL competes in the Banks industry sector.
The company is headquartered in Toronto, Ontario.
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The
company has total assets of $388,458 million, invested
capitalization of $26,938 million, market capitalization of $27,609
million, and revenues of $16,067 million for 2009.
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Peer Group Determination
Compensation and performance comparisons are based on the peer group below.
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Peer
group determination DRIVES compensation levels. In performing a
pay-for-performance analysis 3XCD has selected closely related peers of
equivalent size using Standards and Poor's and Moodys' GICS Industry and
Sub-Industry mnemonic (see Definitions Appendix).
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Invested Capital and Revenue are used to select peer
companies of similar size (see explanation in Definitions Appendix).
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All compensation dollar units are expressed in thousands of dollars. |
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To modify this peer group
please advise.
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Peer Group Comparison on Basic Financial Measures |
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Total Assets Comparison: |
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Invested Capital Comparison: |
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* Invested Capital = value of Equity + value of Long Term Debt. |
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Market Capital Comparison: |
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Company Job Position Summary |
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Using all data provided, we have assessed the analysis for the following individuals.
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Company Positions:
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President and Chief Executive Officer |
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William A Downe |
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Chief Financial Officer |
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R C Robertson |
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Chief Executive Officer, Capital Markets |
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T V Milroy |
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President and Chief Executive Officer, Personal and Commercial Bank of Canada |
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F J Techar |
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If "specific job position matching" is required please advise.. |
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Comparative Compensation Analysis |
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Pay-for-performance comparison evaluates each component
of executive compensation and compares the result to the peer group.
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Compensation Components: |
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Definitions and evaluation methodology are explained below. |
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Base Salary |
Base salary as reported to the securities commission in the last fiscal year. |
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Current Bonus as % of Base Salary |
Current year bonus divided by the current base salary. |
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Average Bonus as % of Base Salary |
Average three-year bonus divided by the current base salary. |
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Other Compensation |
Benefits and perquisites. |
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Total Cash Compensation |
Most recent fiscal period base salary plus most recent bonus. |
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Short-term Incentive (Bonus) |
Bonus that is earned annually is attributed to an appropriate
performance period. Variation in annual payout means companies either
change financial performance, or internal targets are (or are not)
achieved. Since bonus payments change annually, bonus is valued
currently and over three years.
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Mid-term Incentive |
Mid-term
incentives (MTI) are typically earned and paid out over a three-year
period. These plans typically include either three-year performance
hurdles or a stock unit/grant plan.
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Long-term Incentive |
Long-term
Incentives (LTI) typically earn value and pay out over several years.
Valuation depends on the vesting conditions (time-based, accelerated, or
performance-based).
LTI vehicles typically accumulate value over an
extended period of time (likely 3, 5, 7, or 10 years). Given the value
accumulation of long-term incentives, LTI's are valued over three-years
to determine approximate value. Stock options are valued using the
Black-Scholes Option Pricing Model. A discounted "executive" LTI value
is used where performance-based measures are part of the LTI plan.
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Total Direct Compensation |
Total cash compensation plus medium and long-term incentive value. |
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The following shows the relative position of BANK OF MONTREAL's compensation compared to peer group: |
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| Position |
Base Salary |
Current Bonus |
Current Bonus
as % of Base |
Other
Compensation |
Total Cash
Compensation |
MTI
(3-year Average) |
LTI
(3-year Average) |
LTIP
(3-year Average) |
MTI
as % of Base |
LTI
as % of Base |
LTIP
as % of Base |
Total Direct
Compensation |
| President and Chief Executive Officer |
Above Median |
Above Median |
Below Median |
Bottom Quartile |
Above Median |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Below Median |
| Chief Financial Officer |
Below Median |
Top Quartile |
Top Quartile |
Below Median |
Top Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Bottom Quartile |
Above Median |
| Chief Executive Officer, Capital Markets |
Above Median |
Top Quartile |
Top Quartile |
Above Median |
Top Quartile |
Top Quartile |
Above Median |
Above Median |
Top Quartile |
Top Quartile |
Above Median |
Top Quartile |
| President and Chief Executive Officer, Personal and Commercial Bank of Canada |
Top Quartile |
Below Median |
Below Median |
Top Quartile |
Below Median |
Above Median |
Above Median |
Above Median |
Above Median |
Above Median |
Below Median |
Below Median |
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Base Salary Comparison |
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Comparative compensation assessment
against the determined peer group is extremely important.
The chart below
shows Base Salary within the peer group.
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BANK OF MONTREAL
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Total Cash Compensation Comparison |
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Comparative compensation assessment against
the determined peer group is extremely important. The chart
below shows
Total Cash Compensation within the peer group.
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Total Cash Compensation = Base Salary + Bonus |
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BANK OF MONTREAL
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Total Direct Compensation Comparison |
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Comparative compensation assessment against
the determined peer group is extremely important. The chart
below shows Total Direct
Compensation within the peer group.
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Total Direct Compensation = Total Cash Compensation + 3 Yr Avg MTI + 3 Yr Avg LTI.
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BANK OF MONTREAL
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Comparative Financial Performance Details |
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Executive Compensation comparisons should be made within the concept
of absolute and relative financial performance.
The
chart below shows company financial performance versus the peer group
of companies. The financial comparison is shown over a one-year and
three-year performance history.
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| Pay-for-Performance Comparison |
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From
the Corporate Governance and Responsibility standpoint the critical
issue for the Board and shareholders is the linkage of
pay-to-performance.
This analysis should be made annually
and continuously to ensure a continual pay-for-performance linkage.
We
have charted one-year and thee-year total direct compensation to
related key financial measures. This chart can be modified for
diagnostic purposes to show alternate performance measures or individual
compensation elements such as bonus or LTI versus comparative
pay-for-performance.
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Total
Direct Compensation should always be compared to relative financial
performance in both the short-term (1-year) and longer-term (3-year)
time frames.
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The strongest Pay-for-Performance linkage moves the Pay-for-Performance metric towards the ellipse. |
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The
following indicates 1-year and 3-year Total Direct Compensation
compared to relative financial performance versus peer group.
See Definitions for description.
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Charts plot market value performance (Total Shareholder Return) |
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EPS Diluted Growth, Core EPS |
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EBITDA Growth, Net Income Growth (NI) |
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Return (ROA, ROE, ROIC, and ROCE) |
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Total Direct Compensation should correlate to relative
financial performance (shaded quadrants) on the following diagram:
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BANK OF MONTREAL's
Fiscal 2009 1 year Pay for Performance Analysis
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TSR |
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EPS Diluted Growth |
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EPS Diluted |
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Net Income Growth |
 |
ROA |
 |
ROE |
 |
ROIC |
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ROCE |
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EBITDA Growth |
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BANK OF MONTREAL's Fiscal 2009 3 year
Pay for Performance Analysis
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TSR |
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EPS Diluted Growth |
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EPS Diluted |
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Net Income Growth |
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ROA |
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ROE |
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ROIC |
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ROCE |
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EBITDA Growth |
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BANK OF MONTREAL's Fiscal 2009 1 year
Pay for Performance Analysis
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TSR |
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EPS Diluted Growth |
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EPS Diluted |
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Net Income Growth |
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ROA |
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ROE |
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ROIC |
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ROCE |
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EBITDA Growth |
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BANK OF MONTREAL's Fiscal 2009 3 year Pay for
Performance Analysis
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TSR |
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EPS Diluted Growth |
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EPS Diluted |
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Net Income Growth |
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ROA |
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ROE |
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ROIC |
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ROCE |
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EBITDA Growth |
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| Actual Compensation and Compensation Mix for Fiscal 2009 |
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A
key issue in managing executive compensation is the compensation mix
for each executive position. Companies that generate a tighter
pay-for-performance linkage typically have a target executive
"compensation mix" to support the compensation strategy.
The
data below outlines actual compensation by peer group position.
Compensation is then assessed for that position in the current year and
Incentive Grants over three years.
Assessing actual compensation
over a period of time is the only way to incorporate all compensation
components. It is essential to assess any previous long-term incentive
schemes that may be in current operation and typically not calculated
within a current year compensation report.
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Companies may have an option plan where executives are granted options every 2 or 3 years. |
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Companies may have a 3-year performance incentive that
grants incentives only every third year.
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Wealth creation is different to compensation though it is also readily calculated. |
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CEO & President
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| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
Richard E Waugh
CEO & President |
$1000 |
$1500 |
150% |
$2500 |
$1010 |
101% |
$1916 |
191% |
$2926 |
292% |
$5426 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN IMPERIAL BANK |
10 |
$13831 |
$23733 |
G T McCaughey
CEO & President |
$1500 |
$990 |
66% |
$2490 |
$3435 |
229% |
$999 |
66% |
$4433 |
295% |
$6924 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN WESTERN BANK |
10 |
$601 |
$1365 |
Larry M Pollock
CEO & President |
$550 |
$688 |
125% |
$1238 |
$0 |
0% |
$284 |
51% |
$284 |
51% |
$1522 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Rejean Robitaille
CEO & President |
$550 |
$1056 |
192% |
$1606 |
$369 |
67% |
$111 |
20% |
$480 |
87% |
$2086 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Louis Vachon
CEO & President |
$806 |
$1400 |
173% |
$2206 |
$1200 |
148% |
$1205 |
149% |
$2405 |
298% |
$4611 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
Gordon M Nixon
CEO & President |
$1400 |
$2000 |
142% |
$3400 |
$2752 |
196% |
$1854 |
132% |
$4606 |
329% |
$8006 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
W Edmund Clark
CEO & President |
$1500 |
$1700 |
113% |
$3200 |
$4400 |
293% |
$3876 |
258% |
$8276 |
551% |
$11476 |
CND |
0.8611 |
CND |
0.8611 |
| 75th Percentile |
$25242 |
$48879 |
|
$1450 |
$1600 |
162% |
$2850 |
$3094 |
212% |
$1885 |
170% |
$4520 |
314% |
$7465 |
| 50th Percentile |
$13831 |
$23733 |
|
$1000 |
$1400 |
142% |
$2490 |
$1200 |
148% |
$1205 |
132% |
$2926 |
295% |
$5426 |
| 25th Percentile |
$3268 |
$5226 |
|
$678 |
$1023 |
119% |
$1906 |
$690 |
84% |
$642 |
58% |
$1442 |
190% |
$3348 |
| Average |
$15657 |
$29462 |
|
$1044 |
$1333 |
137% |
$2377 |
$1881 |
148% |
$1464 |
124% |
$3344 |
272% |
$5722 |
| 75th Percentile |
$25242 |
$48879 |
|
$1522 |
$1680 |
162% |
$2992 |
$3248 |
212% |
$1979 |
170% |
$4745 |
314% |
$7838 |
| 50th Percentile |
$13831 |
$23733 |
|
$1050 |
$1470 |
142% |
$2614 |
$1260 |
148% |
$1265 |
132% |
$3072 |
295% |
$5697 |
| 25th Percentile |
$3268 |
$5226 |
|
$712 |
$1074 |
119% |
$2001 |
$724 |
84% |
$674 |
58% |
$1515 |
190% |
$3516 |
| Average |
$15657 |
$29462 |
|
$1096 |
$1400 |
137% |
$2496 |
$1975 |
148% |
$1537 |
124% |
$3512 |
272% |
$6008 |
| |
Notes:
*Estimates obtained by aging 2009 proxy data by 5% for 2010.
(1) Base salary plus current bonus.
(2) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(3) Total cash compensation plus average MTI and average LTI.
(4) NA (Not Audited or Not Available base data) is used where data has
not been fully received or is not fully audited.
Please contact us for audited data.
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| Actual Compensation and Compensation Mix for Fiscal 2009 |
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Chief Financial Officer
|
| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
Luc A Vanneste
Chief Financial Officer |
$425 |
$500 |
117% |
$925 |
$218 |
51% |
$388 |
91% |
$606 |
142% |
$1531 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN IMPERIAL BANK |
10 |
$13831 |
$23733 |
J D Williamson
Chief Financial Officer |
$750 |
$450 |
60% |
$1200 |
$468 |
62% |
$271 |
36% |
$739 |
98% |
$1939 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN WESTERN BANK |
10 |
$601 |
$1365 |
Tracey C Ball
Chief Financial Officer |
$293 |
$255 |
87% |
$548 |
$33 |
11% |
$192 |
65% |
$225 |
76% |
$773 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Michel C Lauzon
Chief Financial Officer |
$220 |
$195 |
88% |
$415 |
$88 |
40% |
$159 |
72% |
$247 |
112% |
$662 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Patricia Curadeau Grou
Chief Financial Officer |
$401 |
$534 |
133% |
$935 |
$465 |
115% |
$257 |
64% |
$722 |
180% |
$1657 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
Janice R Fukakusa
Chief Financial Officer |
$588 |
$735 |
125% |
$1323 |
$1048 |
178% |
$1046 |
177% |
$2094 |
356% |
$3417 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Colleen M Johnston
Chief Financial Officer |
$490 |
$625 |
127% |
$1115 |
$842 |
171% |
$388 |
79% |
$1230 |
251% |
$2345 |
CND |
0.8611 |
CND |
0.8611 |
| 75th Percentile |
$25242 |
$48879 |
|
$539 |
$580 |
126% |
$1158 |
$655 |
143% |
$388 |
85% |
$984 |
216% |
$2142 |
| 50th Percentile |
$13831 |
$23733 |
|
$425 |
$500 |
117% |
$935 |
$465 |
62% |
$271 |
72% |
$722 |
142% |
$1657 |
| 25th Percentile |
$3268 |
$5226 |
|
$347 |
$352 |
88% |
$736 |
$153 |
46% |
$224 |
64% |
$426 |
105% |
$1152 |
| Average |
$15657 |
$29462 |
|
$452 |
$471 |
105% |
$923 |
$452 |
90% |
$386 |
83% |
$838 |
174% |
$1761 |
| 75th Percentile |
$25242 |
$48879 |
|
$566 |
$608 |
126% |
$1215 |
$688 |
143% |
$407 |
85% |
$1034 |
216% |
$2249 |
| 50th Percentile |
$13831 |
$23733 |
|
$446 |
$525 |
117% |
$982 |
$488 |
62% |
$285 |
72% |
$758 |
142% |
$1740 |
| 25th Percentile |
$3268 |
$5226 |
|
$364 |
$370 |
88% |
$773 |
$161 |
46% |
$236 |
64% |
$448 |
105% |
$1210 |
| Average |
$15657 |
$29462 |
|
$475 |
$494 |
105% |
$969 |
$474 |
90% |
$405 |
83% |
$879 |
174% |
$1849 |
| |
Notes:
*Estimates obtained by aging 2009 proxy data by 5% for 2010.
(1) Base salary plus current bonus.
(2) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(3) Total cash compensation plus average MTI and average LTI.
(4) NA (Not Audited or Not Available base data) is used where data has
not been fully received or is not fully audited.
Please contact us for audited data.
|
| |
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| |
| Actual Compensation and Compensation Mix for Fiscal 2009 |
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| |
Top of Division or Subsidiary
|
| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
J Michael Durland
Top of Division or Subsidiary |
$350 |
$4000 |
1142% |
$4350 |
$1511 |
431% |
$2599 |
742% |
$4111 |
1174% |
$8460 |
CND |
0.8611 |
CND |
0.8611 |
| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
Stephen D McDonald
Top of Division or Subsidiary |
$350 |
$2550 |
728% |
$2900 |
$1108 |
316% |
$1906 |
544% |
$3014 |
861% |
$5914 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN IMPERIAL BANK |
10 |
$13831 |
$23733 |
R W Nesbitt
Top of Division or Subsidiary |
$750 |
$1134 |
151% |
$1884 |
$1645 |
219% |
$401 |
53% |
$2046 |
272% |
$3930 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN WESTERN BANK |
10 |
$601 |
$1365 |
Brian J Young
Executive Vice President |
$247 |
$188 |
76% |
$435 |
$82 |
33% |
$119 |
48% |
$202 |
81% |
$636 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Francois Desjardins
Executive Vice President |
$255 |
$298 |
116% |
$553 |
$100 |
39% |
$41 |
16% |
$142 |
55% |
$694 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Luc Bernard
Top of Division or Subsidiary |
$259 |
$298 |
115% |
$557 |
$104 |
40% |
$0 |
0% |
$104 |
40% |
$661 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Rejean Levesque
Top of Division or Subsidiary |
$401 |
$534 |
133% |
$935 |
$231 |
57% |
$408 |
101% |
$639 |
159% |
$1574 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Luc Paiement
Top of Division or Subsidiary |
$474 |
$1300 |
274% |
$1774 |
$130 |
27% |
$201 |
42% |
$332 |
70% |
$2105 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
David I McKay
Top of Division or Subsidiary |
$500 |
$850 |
170% |
$1350 |
$0 |
0% |
$834 |
166% |
$834 |
166% |
$2184 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
A Douglas McGregor
Top of Division or Subsidiary |
$200 |
$4380 |
2190% |
$4580 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$4580 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
Mark A Standish
Top of Division or Subsidiary |
$216 |
$4739 |
2193% |
$4955 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$4955 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Robert E Dorrance
Top of Division or Subsidiary |
$500 |
$2800 |
560% |
$3300 |
$2275 |
455% |
$1168 |
233% |
$3443 |
688% |
$6743 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Bharat B Masrani
Top of Division or Subsidiary |
$585 |
$1959 |
334% |
$2544 |
$3153 |
538% |
$1325 |
226% |
$4478 |
765% |
$7022 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Tim Hockey
Top of Division or Subsidiary |
$500 |
$1175 |
235% |
$1675 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$1675 |
CND |
0.8611 |
CND |
0.8611 |
| 75th Percentile |
$25421 |
$52870 |
|
$500 |
$2738 |
686% |
$3200 |
$1410 |
292% |
$1084 |
211% |
$2772 |
584% |
$5674 |
| 50th Percentile |
$25064 |
$44888 |
|
$376 |
$1238 |
254% |
$1829 |
$117 |
40% |
$301 |
50% |
$486 |
120% |
$3057 |
| 25th Percentile |
$5361 |
$9087 |
|
$256 |
$613 |
138% |
$1039 |
$20 |
7% |
$10 |
4% |
$114 |
44% |
$1599 |
| Average |
$19166 |
$36684 |
|
$399 |
$1872 |
601% |
$2271 |
$738 |
154% |
$643 |
155% |
$1382 |
309% |
$3652 |
| 75th Percentile |
$25421 |
$52870 |
|
$525 |
$2874 |
686% |
$3360 |
$1481 |
292% |
$1139 |
211% |
$2911 |
584% |
$5958 |
| 50th Percentile |
$25064 |
$44888 |
|
$394 |
$1299 |
254% |
$1920 |
$123 |
40% |
$316 |
50% |
$510 |
120% |
$3210 |
| 25th Percentile |
$5361 |
$9087 |
|
$269 |
$644 |
138% |
$1091 |
$22 |
7% |
$11 |
4% |
$119 |
44% |
$1679 |
| Average |
$19166 |
$36684 |
|
$419 |
$1965 |
601% |
$2384 |
$775 |
154% |
$675 |
155% |
$1451 |
309% |
$3835 |
| |
Notes:
*Estimates obtained by aging 2009 proxy data by 5% for 2010.
(1) Base salary plus current bonus.
(2) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(3) Total cash compensation plus average MTI and average LTI.
(4) NA (Not Audited or Not Available base data) is used where data has
not been fully received or is not fully audited.
Please contact us for audited data.
|
| |
|
|
| |
| Actual Compensation and Compensation Mix for Fiscal 2009 |
|
|
| |
Top of Division or Subsidiary
|
| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
J Michael Durland
Top of Division or Subsidiary |
$350 |
$4000 |
1142% |
$4350 |
$1511 |
431% |
$2599 |
742% |
$4111 |
1174% |
$8460 |
CND |
0.8611 |
CND |
0.8611 |
| BANK OF NOVA SCOTIA |
10 |
$25064 |
$44888 |
Stephen D McDonald
Top of Division or Subsidiary |
$350 |
$2550 |
728% |
$2900 |
$1108 |
316% |
$1906 |
544% |
$3014 |
861% |
$5914 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN IMPERIAL BANK |
10 |
$13831 |
$23733 |
R W Nesbitt
Top of Division or Subsidiary |
$750 |
$1134 |
151% |
$1884 |
$1645 |
219% |
$401 |
53% |
$2046 |
272% |
$3930 |
CND |
0.8611 |
CND |
0.8611 |
| CANADIAN WESTERN BANK |
10 |
$601 |
$1365 |
Brian J Young
Executive Vice President |
$247 |
$188 |
76% |
$435 |
$82 |
33% |
$119 |
48% |
$202 |
81% |
$636 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Francois Desjardins
Executive Vice President |
$255 |
$298 |
116% |
$553 |
$100 |
39% |
$41 |
16% |
$142 |
55% |
$694 |
CND |
0.8611 |
CND |
0.8611 |
| LAURENTIAN BANK OF CANADA |
10 |
$1175 |
$945 |
Luc Bernard
Top of Division or Subsidiary |
$259 |
$298 |
115% |
$557 |
$104 |
40% |
$0 |
0% |
$104 |
40% |
$661 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Rejean Levesque
Top of Division or Subsidiary |
$401 |
$534 |
133% |
$935 |
$231 |
57% |
$408 |
101% |
$639 |
159% |
$1574 |
CND |
0.8611 |
CND |
0.8611 |
| NATIONAL BANK CANADA |
10 |
$5361 |
$9087 |
Luc Paiement
Top of Division or Subsidiary |
$474 |
$1300 |
274% |
$1774 |
$130 |
27% |
$201 |
42% |
$332 |
70% |
$2105 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
David I McKay
Top of Division or Subsidiary |
$500 |
$850 |
170% |
$1350 |
$0 |
0% |
$834 |
166% |
$834 |
166% |
$2184 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
A Douglas McGregor
Top of Division or Subsidiary |
$200 |
$4380 |
2190% |
$4580 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$4580 |
CND |
0.8611 |
CND |
0.8611 |
| ROYAL BANK OF CANADA |
10 |
$38143 |
$73343 |
Mark A Standish
Top of Division or Subsidiary |
$216 |
$4739 |
2193% |
$4955 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$4955 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Robert E Dorrance
Top of Division or Subsidiary |
$500 |
$2800 |
560% |
$3300 |
$2275 |
455% |
$1168 |
233% |
$3443 |
688% |
$6743 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Bharat B Masrani
Top of Division or Subsidiary |
$585 |
$1959 |
334% |
$2544 |
$3153 |
538% |
$1325 |
226% |
$4478 |
765% |
$7022 |
CND |
0.8611 |
CND |
0.8611 |
| TORONTO DOMINION BANK |
10 |
$25421 |
$52870 |
Tim Hockey
Top of Division or Subsidiary |
$500 |
$1175 |
235% |
$1675 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$1675 |
CND |
0.8611 |
CND |
0.8611 |
| 75th Percentile |
$25421 |
$52870 |
|
$500 |
$2738 |
686% |
$3200 |
$1410 |
292% |
$1084 |
211% |
$2772 |
584% |
$5674 |
| 50th Percentile |
$25064 |
$44888 |
|
$376 |
$1238 |
254% |
$1829 |
$117 |
40% |
$301 |
50% |
$486 |
120% |
$3057 |
| 25th Percentile |
$5361 |
$9087 |
|
$256 |
$613 |
138% |
$1039 |
$20 |
7% |
$10 |
4% |
$114 |
44% |
$1599 |
| Average |
$19166 |
$36684 |
|
$399 |
$1872 |
601% |
$2271 |
$738 |
154% |
$643 |
155% |
$1382 |
309% |
$3652 |
| 75th Percentile |
$25421 |
$52870 |
|
$525 |
$2874 |
686% |
$3360 |
$1481 |
292% |
$1139 |
211% |
$2911 |
584% |
$5958 |
| 50th Percentile |
$25064 |
$44888 |
|
$394 |
$1299 |
254% |
$1920 |
$123 |
40% |
$316 |
50% |
$510 |
120% |
$3210 |
| 25th Percentile |
$5361 |
$9087 |
|
$269 |
$644 |
138% |
$1091 |
$22 |
7% |
$11 |
4% |
$119 |
44% |
$1679 |
| Average |
$19166 |
$36684 |
|
$419 |
$1965 |
601% |
$2384 |
$775 |
154% |
$675 |
155% |
$1451 |
309% |
$3835 |
| |
Notes:
*Estimates obtained by aging 2009 proxy data by 5% for 2010.
(1) Base salary plus current bonus.
(2) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(3) Total cash compensation plus average MTI and average LTI.
(4) NA (Not Audited or Not Available base data) is used where data has
not been fully received or is not fully audited.
Please contact us for audited data.
|
| |
|
|
|
| |
Option Valuation using Black-Scholes |
|
| |
| |
| |
The
following table shows all stock-option grants offered to executives in
the analysed fiscal period. Each stock-option grant has several
variables that are used to determine value. Volatility is a measure of
the stock price volatility assessed over three-years from grant date.
Two Black-Scholes values are shown. The first Black-Scholes value does
not include annual dividend yields whereas the second value does include
dividend yields. Dividend yield directly impacts the compensation value
of stock-options that are granted to executives. A difference between
these values is an indicator of the annual dividends the company
delivers to shareholders. Dividend yield also directly impacts
stock-option value for options granted and valued using Binomial
Valuation. Do you want
Binomial Valuation of stock-options?
|
|
|
|
| |
| |
■ |
5 Year Historical Adjusted Close Price |
| |
■ |
Stock-Option Grant Valuation Table |
|
| |
| Company Name |
Proxy Date |
Grant Date |
Volatility |
Black-Scholes
Value
without Dividends |
Black-Scholes
Value
with Dividends |
| BANK OF MONTREAL |
26 Feb 2010 |
11 Dec 2008 |
30.4% |
44% |
20% |
| BANK OF NOVA SCOTIA |
01 Mar 2010 |
05 Dec 2008 |
28.4% |
44% |
19% |
| |
|
05 Dec 2008 |
28.4% |
78% |
37% |
| CANADIAN IMPERIAL BANK |
04 Feb 2010 |
07 Dec 2008 |
32.9% |
49% |
18% |
| CANADIAN WESTERN BANK |
28 Jan 2010 |
12 Dec 2008 |
36.2% |
32% |
26% |
| |
|
15 Jun 2009 |
43.1% |
45% |
37% |
| LAURENTIAN BANK OF CANADA |
12 Feb 2010 |
05 Dec 2008 |
28.7% |
38% |
20% |
| NATIONAL BANK CANADA |
04 Mar 2010 |
10 Dec 2008 |
29.4% |
41% |
18% |
| ROYAL BANK OF CANADA |
08 Feb 2010 |
15 Dec 2008 |
30.2% |
44% |
23% |
| |
|
15 Dec 2008 |
30.2% |
44% |
23% |
| |
|
10 Mar 2009 |
34.3% |
59% |
32% |
| TORONTO DOMINION BANK |
25 Feb 2010 |
12 Dec 2008 |
28.6% |
35% |
20% |
| |
|
04 Mar 2009 |
31.2% |
46% |
23% |
Note: Risk free rate is 10 year government note at grant date.
|
|
|