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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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n |
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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n |
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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n |
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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n |
BANK OF MONTREAL competes in
the Banks industry sector.
The company is headquartered in Montreal, Quebec.
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n |
The company currently has invested capitalization of $17,313
million and revenues of $13,208 million. |
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n |
Peer Group Determination
Compensation and performance comparisons are based on the peer group below.
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l |
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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l |
Invested Capital and Revenue are used to select peer
companies of similar size (see explanation in Definitions Appendix).
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l |
All compensation dollar units are expressed in thousands of
dollars.
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l |
To modify this peer group please
advise.
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Peer Group Comparison on Basic Financial
Measures
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n |
Invested Capital Comparison: |
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* Invested Capital = value of
Equity + value of Long Term Debt.
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n |
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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l |
President and Chief Executive Officer |
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FA Comper |
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Senior Executive Vice President Chief Financial
Officer |
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KE Maidment |
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l |
BMO Financial Group Chief Executive Officer BMO
Nesbit Burns and Head of Investment Banking Group |
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WA Downe |
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l |
President and Chief Executive Officer Private Client
Group |
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GG Ouellette |
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n |
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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n |
Base Salary
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Base salary as reported to the securities
commission in the last fiscal year.
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n |
Current Bonus as % of Base Salary
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Current year bonus divided by the current base
salary.
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n |
Average Bonus as % of Base Salary
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Average three-year bonus divided by the current
base salary.
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n |
Total Cash Compensation
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Most recent fiscal period base salary plus most
recent bonus.
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n |
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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n |
Mid-term Incentive
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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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n |
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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n |
Total Direct Compensation
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Total cash compensation plus medium and
long-term incentive value. |
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n |
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 |
3-year Bonus
3-year Average |
3 year Bonus
as % of Base |
Total Cash
Compensation |
LTI Compensation
(3-year Average) |
MTI Compensation
(3-year Average) |
LTIP Compensation
(3-year Average) |
LTI
as % of Base |
MTI
as % of Base |
LTIP
as % of Base |
Total Direct
Compensation |
| President and Chief Executive Officer |
Below Median
|
Above Median
|
Top Quartile
|
Above Median
|
Top Quartile
|
Above Median
|
Above Median
|
Above Median
|
Above Median
|
Above Median
|
Above Median
|
Below Median
|
Above Median
|
| Senior Executive Vice President Chief Financial Officer |
Top Quartile
|
Top Quartile
|
Top Quartile
|
Top Quartile
|
Top Quartile
|
Top Quartile
|
Above Median
|
Above Median
|
Above Median
|
Below Median
|
Above Median
|
Below Median
|
Above Median
|
| BMO Financial Group Chief Executive Officer BMO Nesbit Burns and
Head of Investment Banking Group |
Top Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Top Quartile
|
Top Quartile
|
Top Quartile
|
Bottom Quartile
|
Top Quartile
|
Bottom Quartile
|
Top Quartile
|
| President and Chief Executive Officer Private Client Group |
Below Median
|
Top Quartile
|
Above Median
|
Above Median
|
Below Median
|
Top Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
|
Bottom Quartile
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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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n |
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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n |
Total Direct Compensation = Total
Cash Compensation + Medium-term and Long-term Incentive value. |
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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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n |
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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n |
The strongest Pay-for-Performance linkage moves the
Pay-for-Performance metric towards the ellipse.
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n |
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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l |
Charts plot market value performance (Total Shareholder
Return) |
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l |
EPS Diluted Growth, Core EPS
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l |
EBITDA Growth, Net Income Growth (NI) |
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l |
Return (ROA, ROE and ROIC) |
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n |
Total Direct Compensation should correlate to relative
financial performance (shaded quadrants) on the following diagram: |
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BANK OF MONTREAL's Fiscal
2004 1 year Pay for Performance Analysis
 |
TSR |
 |
EPS Diluted Growth |
 |
Core EPS |
 |
Net Income Growth |
 |
ROA |
 |
ROE |
 |
ROIC |
 |
EBITDA Growth |
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BANK OF MONTREAL's Fiscal
2004 3 year Pay for Performance Analysis
|
TSR |
|
EPS Diluted Growth |
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Core EPS |
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Net Income Growth |
|
ROA |
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ROE |
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ROIC |
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EBITDA Growth |
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 |
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BANK OF MONTREAL's Fiscal
2004 1 year Pay for Performance Analysis
|
TSR |
|
EPS Diluted Growth |
|
Core EPS |
|
Net Income Growth |
|
ROA |
|
ROE |
|
ROIC |
|
EBITDA Growth |
|
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BANK OF MONTREAL's Fiscal
2004 3 year Pay for Performance Analysis
|
TSR |
|
EPS Diluted Growth |
|
Core EPS |
|
Net Income Growth |
|
ROA |
|
ROE |
|
ROIC |
|
EBITDA Growth |
|
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| Actual Compensation and Compensation Mix for
Fiscal 2004 |
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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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n |
Companies may have an option plan where executives are
granted options every 2 or 3 years.
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n |
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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President and Chief Executive Officer
|
| 10 |
BANK OF NOVA SCOTIA |
$16497 |
$39941 |
Richard E Waugh
President CEO |
$983 |
$1600 |
162% |
$1400 |
142% |
$2583 |
$3900 |
396% |
$1912 |
194% |
$5813 |
591% |
$8395 |
| 10 |
CANADIAN IMPERIAL BANK |
$16705 |
$27036 |
JS Hunkin
President and Chief Executive Officer |
$1000 |
$3050 |
305% |
$2167 |
216% |
$4050 |
$285 |
28% |
$2452 |
245% |
$2738 |
273% |
$6787 |
| 10 |
CANADIAN WESTERN BANK |
$273 |
$641 |
Larry M Pollock
President and Chief Executive Officer |
$400 |
$480 |
120% |
$408 |
102% |
$880 |
$398 |
99% |
$0 |
0% |
$398 |
99% |
$1278 |
| 10 |
LAURENTIAN BANK OF CANADA |
$944 |
$598 |
Raymond McManus
President and Chief Executive Officer |
$500 |
$75 |
15% |
$117 |
23% |
$575 |
$312 |
62% |
$0 |
0% |
$312 |
62% |
$887 |
| 10 |
NATIONAL BANK CANADA |
$4771 |
$8431 |
Real Raymond
President and Chief Executive Officer |
$1000 |
$1500 |
150% |
$1067 |
106% |
$2500 |
$1960 |
196% |
$733 |
73% |
$2692 |
269% |
$5193 |
| 10 |
ROYAL BANK OF CANADA |
$25204 |
$41241 |
GM Nixon
President and Chief Executive Officer |
$1366 |
$1350 |
98% |
$1600 |
117% |
$2716 |
$2782 |
203% |
$2289 |
167% |
$5071 |
371% |
$7787 |
| 10 |
TORONTO DOMINION BANK |
$16015 |
$32067 |
WE Clark
President CEO |
$1414 |
$3000 |
212% |
$2500 |
176% |
$4414 |
$4192 |
296% |
$3289 |
232% |
$7480 |
528% |
$11895 |
| 75th Percentile |
$16601 |
$36004 |
|
$1183 |
$2300 |
187% |
$1884 |
159% |
$3383 |
$3341 |
250% |
$2370 |
213% |
$5442 | 450% |
$8091 |
| 50th Percentile |
$16015 |
$27036 |
|
$1000 |
$1500 |
150% |
$1400 |
117% |
$2583 |
$1960 |
196% |
$1912 |
167% |
$2738 | 273% |
$6787 |
| 25th Percentile |
$2858 |
$4536 |
|
$742 |
$915 |
109% |
$738 |
104% |
$1690 |
$355 |
80% |
$366 |
36% |
$1545 | 184% |
$3236 |
| Average |
$11487 |
$21422 |
|
$952 |
$1579 |
152% |
$1323 |
126% |
$2531 |
$1976 |
183% |
$1525 |
130% |
$3501 | 313% |
$6032 |
| 75th Percentile |
$16601 |
$36004 |
|
$1230 |
$2392 |
187% |
$1959 |
159% |
$3518 |
$3475 |
250% |
$2465 |
213% |
$5660 | 450% |
$8415 |
| 50th Percentile |
$16015 |
$27036 |
|
$1040 |
$1560 |
150% |
$1456 |
117% |
$2686 |
$2038 |
196% |
$1988 |
167% |
$2848 | 273% |
$7058 |
| 25th Percentile |
$2858 |
$4536 |
|
$771 |
$952 |
109% |
$767 |
104% |
$1758 |
$369 |
80% |
$381 |
36% |
$1607 | 184% |
$3365 |
| Average |
$11487 |
$21422 |
|
$990 |
$1642 |
152% |
$1376 |
126% |
$2632 |
$2055 |
183% |
$1586 |
130% |
$3641 | 313% |
$6273 |
| |
Notes:
*Estimates obtained by aging 2004 proxy data by 4% for 2005.
(1) Represents the average bonus as a percentage of salary over 3 years divided
by the current salary.
(2) Base salary plus current bonus.
(3) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(4) Total cash compensation plus average MTI and average LTI.
(5) 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 2004 |
|
|
| |
Senior Executive Vice President Chief
Financial Officer
|
| 10 |
BANK OF NOVA SCOTIA |
$16497 |
$39941 |
Sarabjit S Marwah
Senior Executive Vice-President and Chief Financial
Officer |
$450 |
$450 |
100% |
$450 |
100% |
$900 |
$1117 |
248% |
$800 |
177% |
$1917 |
426% |
$2817 |
| 10 |
CANADIAN IMPERIAL BANK |
$16705 |
$27036 |
TD Woods
Senior Executive Vice President Chief Financial Officer |
$400 |
$1000 |
250% |
$1000 |
250% |
$1400 |
$203 |
50% |
$1190 |
297% |
$1393 |
348% |
$2793 |
| 10 |
CANADIAN WESTERN BANK |
$273 |
$641 |
Tracey C Ball
Executive Vice-President Chief Financial Officer |
$179 |
$109 |
60% |
$76 |
42% |
$288 |
$225 |
125% |
$0 |
0% |
$225 |
125% |
$513 |
| 10 |
LAURENTIAN BANK OF CANADA |
$944 |
$598 |
Robert Cardinal
Senior Executive Vice-President and Chief Financial
Officer |
$250 |
$30 |
12% |
$65 |
26% |
$280 |
$50 |
20% |
$0 |
0% |
$50 |
20% |
$330 |
| 10 |
NATIONAL BANK CANADA |
$4771 |
$8431 |
Louis Vachon
Senior Vice-President Treasury and Financial Markets |
$250 |
$2309 |
923% |
$2152 |
860% |
$2559 |
$290 |
116% |
$0 |
0% |
$290 |
116% |
$2849 |
| 10 |
ROYAL BANK OF CANADA |
$25204 |
$41241 |
P Currie
Retiried Chief Financial Officer |
$600 |
$451 |
75% |
$451 |
75% |
$1051 |
$596 |
99% |
$497 |
82% |
$1092 |
182% |
$2144 |
| 10 |
ROYAL BANK OF CANADA |
$25204 |
$41241 |
JR Fukakusa
Chief Financial Officer |
$337 |
$0 |
0% |
$0 |
0% |
$337 |
$0 |
0% |
$0 |
0% |
$0 |
0% |
$337 |
| 10 |
TORONTO DOMINION BANK |
$16015 |
$32067 |
DA Marinangeli
Executive Vice President CFO |
$351 |
$450 |
128% |
$450 |
128% |
$801 |
$548 |
156% |
$788 |
224% |
$1336 |
380% |
$2137 |
| 75th Percentile |
$18830 |
$40266 |
|
$412 |
$588 |
158% |
$588 |
158% |
$1138 |
$560 |
133% |
$791 |
189% |
$1350 | 356% |
$2799 |
| 50th Percentile |
$16256 |
$29552 |
|
$344 |
$450 |
88% |
$450 |
88% |
$850 |
$258 |
108% |
$248 |
41% |
$691 | 154% |
$2140 |
| 25th Percentile |
$3814 |
$6484 |
|
$250 |
$89 |
48% |
$73 |
38% |
$325 |
$165 |
42% |
$0 |
0% |
$181 | 92% |
$469 |
| Average |
$13202 |
$23900 |
|
$352 |
$600 |
194% |
$580 |
185% |
$952 |
$379 |
102% |
$409 |
98% |
$788 | 200% |
$1740 |
| 75th Percentile |
$18830 |
$40266 |
|
$429 |
$612 |
158% |
$612 |
158% |
$1184 |
$582 |
133% |
$823 |
189% |
$1404 | 356% |
$2911 |
| 50th Percentile |
$16256 |
$29552 |
|
$358 |
$468 |
88% |
$468 |
88% |
$885 |
$268 |
108% |
$258 |
41% |
$719 | 154% |
$2226 |
| 25th Percentile |
$3814 |
$6484 |
|
$260 |
$93 |
48% |
$76 |
38% |
$338 |
$171 |
42% |
$0 |
0% |
$188 | 92% |
$488 |
| Average |
$13202 |
$23900 |
|
$366 |
$624 |
194% |
$604 |
185% |
$990 |
$394 |
102% |
$426 |
98% |
$819 | 200% |
$1810 |
| |
Notes:
*Estimates obtained by aging 2004 proxy data by 4% for 2005.
(1) Represents the average bonus as a percentage of salary over 3 years divided
by the current salary.
(2) Base salary plus current bonus.
(3) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(4) Total cash compensation plus average MTI and average LTI.
(5) 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 2004 |
|
|
| |
BMO Financial Group Chief Executive Officer
BMO Nesbit Burns and Head of Investment Banking Group
|
| 10 |
NATIONAL BANK CANADA |
$4771 |
$8431 |
Jean Turmel
President - Financial Markets, Treasury and Investment
Bank |
$500 |
$4138 |
827% |
$3252 |
650% |
$4638 |
$653 |
130% |
$1329 |
265% |
$1981 |
396% |
$6620 |
| 75th Percentile |
$4771 |
$8431 |
|
$500 |
$4138 |
827% |
$3252 |
650% |
$4638 |
$653 |
130% |
$1329 |
265% |
$1981 | 396% |
$6620 |
| 50th Percentile |
$4771 |
$8431 |
|
$500 |
$4138 |
827% |
$3252 |
650% |
$4638 |
$653 |
130% |
$1329 |
265% |
$1981 | 396% |
$6620 |
| 25th Percentile |
$4771 |
$8431 |
|
$500 |
$4138 |
827% |
$3252 |
650% |
$4638 |
$653 |
130% |
$1329 |
265% |
$1981 | 396% |
$6620 |
| Average |
$4771 |
$8431 |
|
$500 |
$4138 |
827% |
$3252 |
650% |
$4638 |
$653 |
130% |
$1329 |
265% |
$1981 | 396% |
$6620 |
| 75th Percentile |
$4771 |
$8431 |
|
$520 |
$4304 |
827% |
$3382 |
650% |
$4824 |
$679 |
130% |
$1382 |
265% |
$2060 | 396% |
$6885 |
| 50th Percentile |
$4771 |
$8431 |
|
$520 |
$4304 |
827% |
$3382 |
650% |
$4824 |
$679 |
130% |
$1382 |
265% |
$2060 | 396% |
$6885 |
| 25th Percentile |
$4771 |
$8431 |
|
$520 |
$4304 |
827% |
$3382 |
650% |
$4824 |
$679 |
130% |
$1382 |
265% |
$2060 | 396% |
$6885 |
| Average |
$4771 |
$8431 |
|
$520 |
$4304 |
827% |
$3382 |
650% |
$4824 |
$679 |
130% |
$1382 |
265% |
$2060 | 396% |
$6885 |
| |
Notes:
*Estimates obtained by aging 2004 proxy data by 4% for 2005.
(1) Represents the average bonus as a percentage of salary over 3 years divided
by the current salary.
(2) Base salary plus current bonus.
(3) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(4) Total cash compensation plus average MTI and average LTI.
(5) 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 2004 |
|
|
| |
President and Chief Executive Officer Private
Client Group
|
| 10 |
BANK OF NOVA SCOTIA |
$16497 |
$39941 |
Robert W Chisholm
Vice-Chairman President CEO Domestic Banking Wealth
Management |
$725 |
$825 |
113% |
$825 |
113% |
$1550 |
$1861 |
256% |
$1250 |
172% |
$3111 |
429% |
$4661 |
| 10 |
BANK OF NOVA SCOTIA |
$16497 |
$39941 |
W David Wilson
Vice-Chairman Chairman CEO Scotia Capital |
$275 |
$1645 |
598% |
$1645 |
598% |
$1920 |
$2978 |
1082% |
$2380 |
865% |
$5358 |
1948% |
$7278 |
| 75th Percentile |
$16497 |
$39941 |
|
$612 |
$1440 |
477% |
$1440 |
477% |
$1828 |
$2699 |
876% |
$2098 |
692% |
$4796 | 1568% |
$6624 |
| 50th Percentile |
$16497 |
$39941 |
|
$500 |
$1235 |
356% |
$1235 |
356% |
$1735 |
$2420 |
669% |
$1815 |
518% |
$4234 | 1188% |
$5970 |
| 25th Percentile |
$16497 |
$39941 |
|
$388 |
$1030 |
234% |
$1030 |
234% |
$1642 |
$2140 |
462% |
$1532 |
345% |
$3673 | 809% |
$5315 |
| Average |
$16497 |
$39941 |
|
$500 |
$1235 |
356% |
$1235 |
356% |
$1735 |
$2420 |
669% |
$1815 |
518% |
$4234 | 1188% |
$5970 |
| 75th Percentile |
$16497 |
$39941 |
|
$637 |
$1498 |
477% |
$1498 |
477% |
$1901 |
$2807 |
876% |
$2181 |
692% |
$4988 | 1568% |
$6889 |
| 50th Percentile |
$16497 |
$39941 |
|
$520 |
$1284 |
356% |
$1284 |
356% |
$1804 |
$2516 |
669% |
$1888 |
518% |
$4404 | 1188% |
$6208 |
| 25th Percentile |
$16497 |
$39941 |
|
$403 |
$1071 |
234% |
$1071 |
234% |
$1708 |
$2226 |
462% |
$1594 |
345% |
$3820 | 809% |
$5528 |
| Average |
$16497 |
$39941 |
|
$520 |
$1284 |
356% |
$1284 |
356% |
$1804 |
$2516 |
669% |
$1888 |
518% |
$4404 | 1188% |
$6208 |
| |
Notes:
*Estimates obtained by aging 2004 proxy data by 4% for 2005.
(1) Represents the average bonus as a percentage of salary over 3 years divided
by the current salary.
(2) Base salary plus current bonus.
(3) Estimated annualized option grant value (3 year average where available)
using grant specific Black-Scholes multiples.
(4) Total cash compensation plus average MTI and average LTI.
(5) 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?
|
|
|
|
| |
| |
n |
5 Year Historial Adjusted Close
Price |
| |
n |
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 |
21 Jan 2005 |
09 Dec 2004 |
19%
|
42%
|
24%
|
| BANK OF NOVA SCOTIA |
27 Jan 2005 |
01 Jan 2004 |
107.5%
|
80%
|
70%
|
|
|
|
04 Dec 2004 |
63.5%
|
75%
|
54%
|
| CANADIAN IMPERIAL BANK |
27 Jan 2005 |
02 Dec 2004 |
23.4%
|
45%
|
25%
|
| CANADIAN WESTERN BANK |
21 Jan 2005 |
02 Jun 2004 |
62.9%
|
58%
|
52%
|
|
|
|
02 Sep 2004 |
62.7%
|
57%
|
51%
|
| LAURENTIAN BANK OF CANADA |
07 Feb 2005 |
10 Dec 2004 |
21.1%
|
41%
|
16%
|
| NATIONAL BANK CANADA |
24 Jan 2005 |
12 Dec 2003 |
24.6%
|
47%
|
27%
|
| ROYAL BANK OF CANADA |
26 Jan 2005 |
02 Dec 2004 |
18.1%
|
38%
|
19%
|
| TORONTO DOMINION BANK |
17 Feb 2005 |
10 Dec 2004 |
22.5%
|
36%
|
23%
|
Note: Risk free rate is 10 year government note at grant
date.
|
|
|