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Four of the six chief execs at Canada’s biggest banks received more compensation in 2024 as they were rewarded for meeting financial targets in a year marked by uncertainties linked to the United States elections and rising provisions for credit losses, but the heads of Toronto-Dominion Bank and Bank of Montreal saw their pay packages decline.

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Dave McKay, Royal Bank of Canada‘s chief executive, saw his total pay jump to $25.9 million last year, up from $16.1 million in 2023. The increase included a $4-million “special performance-based equity award” linked to RBC’s acquisition of HSBC Holdings PLC’s Canadian operations, according to the bank’s proxy statement.

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“McKay guided the bank through the once-in-a-generation acquisition of HSBC Canada, enhancing RBC’s existing Canadian businesses,” the bank said.

The award can be accessed in December 2027 and is conditional on progress being made with respect to RBC’s continued integration of HSBC.

Excluding the award, McKay’s total pay would have been $20.5 million, which is still significantly higher than what he was paid a year ago. This reflects aspects such as the banks’ record earnings and his “extraordinary efforts in creating long-term value for RBC’s clients, employees, communities … and shareholders,” RBC said.

While the head of Canada’s biggest bank received the largest increase in pay amongst the Big Six CEOs, the head of the second-biggest lender, TD Bank, saw the largest decline due to the lender’s issues with money laundering in the U.S. TD’s growth in the U.S. was restricted and the bank was also fined $3.1 billion by U.S. regulators.

The bank’s former chief executive, Bharat Masrani, didn’t receive a cash or equity incentive for fiscal 2024, which reduced his total compensation by 89 per cent from 2023. The remaining members of TD’s senior executive team saw their variable compensation reduced by at least 25 per cent in 2024.

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The bank, though, approved a conditional award of US$2 million to its U.S. banking head, Leo Salom, considering the “critical role” he will play for remediating the bank’s anti-money laundering (AML) program. He could receive the award in 2025 “subject to meeting AML remediation conditions and milestones,” the bank said in its proxy statement.

BMO chief executive Darryl White saw his pay decline for a third year in a row, as he received total compensation of $10.9 million last year compared to $12.5 million in 2023 and $14.2 million in 2022. BMO had a rough year in which it reported higher-than-expected provisions for credit losses (PCLs) — the money banks keep aside to tackle potentially bad loans.

The bank’s PCLs increased to $1.5 billion in the fourth quarter last year from $627 million in the first quarter as consumers struggled to pay back loans in a high-interest environment. The situation seems to have begun improving, with the bank posting a relatively lower PCL of $1.01 billion in the first quarter of 2025.

The head of Canadian Imperial Bank of Commerce, Victor Dodig, saw his total pay increase to $13.6 million last year — second-most amongst the Big Six CEOs — from $11.2 million in 2023.

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“Through Dodig’s leadership and continued execution of our bank’s client-focused strategy, CIBC delivered for all of its stakeholders in 2024,” CIBC said in its proxy statement. “This included robust financial performance … record revenue and net income, while generating positive operating leverage (on an adjusted basis) for a second straight year.”

With a total pay of $12.07 million in 2024, National Bank of Canada chief executive Laurent Ferreira received a 30 per cent increase from his pay in 2023.

The bank, which completed the acquisition of the Canada Western Bank in February, said Ferreira had “skilfully overseen the execution of the strategy that ensures the bank’s differentiating position in the market. His positive and engaging leadership motivates the teams to pursue the bank’s growth.”

Bank of Nova Scotia chief executive Scott Thomson’s total pay increased to $10.3 million last year, from $9.4 million in 2023. Under his leadership, the bank said it “successfully laid the groundwork necessary to execute” its vision and deliver profitable growth.

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“He has ensured we are disciplined in how and where we allocate capital, investing in areas that will drive growth for the bank, while optimizing existing capital in those markets that have seen lower returns,” the bank said in its proxy statement.

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