The top executives at three of Canada’s biggest banks took home less than their target pay last year, according to new filings. 

The fiscal year was marked by rising interest rates, the US regional bank crisis, geopolitical uncertainty and increasing regulatory pressures. Those challenges influenced executive pay at the four largest lenders that have disclosed annual compensation so far — Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce.

Of the four chief executive officers, only Royal Bank’s Dave McKay took home more than his target compensation in fiscal 2023. Here’s how compensation played out at those banks. 

Bank of Montreal’s Darryl White

Darryl White was paid $11.2 million (US$8.4 million) in direct compensation, which includes salary, bonus and share- and option-based awards, below the board’s $11.8 million target. “Through the year greater instability in U.S. regional banking and more global economic uncertainty occurred than anticipated and BMO did not achieve its 2023 goals,” the bank said in its proxy circular.

Bank of Montreal completed its acquisition and integration of San Francisco-based Bank of the West last year.   

Including pension amounts and non-cash benefits, White’s pay was $12.5 million, down from $14.3 million in 2022. 

Scotiabank’s Scott Thomson

Scott Thomson officially stepped into the CEO role at Scotiabank on Feb. 1 last year and his compensation was pro-rated to reflect that. The board awarded him $7.7 million in direct pay, $1 million less than his target. His total compensation including pension and other benefits was $9.4 million. 

The new CEO conducted a “comprehensive review” of the business last year and held more than 50 one-on-one meetings with institutional investors, the bank said in its circular. Thomson unveiled a new strategy at an investor day in December. 

“While earnings were below plan for the year,” the document said, “Mr. Thomson made key strategic decisions to establish the foundation needed to prepare the bank for its next phase of profitable, sustainable growth.”

CIBC’s Victor Dodig

Victor Dodig’s target for direct compensation was set at $11 million and CIBC’s board awarded him $10.7 million, reflecting the fact that the bank fell short of its financial targets. 

His total compensation was up slightly from the previous year at $11.2 million.

CIBC announced an executive shuffle Thursday, including plans to move Chief Financial Officer Hratch Panossian into an operating role as head of personal and business banking. 

“Victor’s been CEO for a decade. So, it looks like they’re shuffling the pieces around a little bit and hopefully getting some interesting names some different experience,” John Aiken, an equity analyst with Jefferies Financial Group Inc., told Bloomberg in an interview. 

Royal Bank’s Dave McKay  

Dave McKay received overall compensation of $16.1 million for the fiscal year ended Oct. 31, down slightly from a year earlier.

His direct compensation target was $14 million and the board awarded him $15.2 million, making him the only CEO of the four to exceed his target. 

McKay’s short-term incentive payment for the year was 10 per cent lower than last year, “reflecting lower financial performance compared to target,” the bank said in the filing. 

But the board granted McKay more generous mid- and long-term awards, noting citing his “continued leadership in steering RBC through a turbulent environment and making strategic investments”.

McKay managed to win government approval for Royal Bank’s landmark acquisition of HSBC Holdings Plc’s Canadian assets last year, a deal that is set to close on March 2