Scotiabank CEO Brian Porter speaks to media during the company's AGM in Kelowna, B.C. April 8, 2014.BEN NELMS/Reuters
In his first year as Bank of Nova Scotia's chief executive, Brian Porter received a 26-per-cent boost in pay – but his compensation remains well below that of Scotiabank's previous chief executive, Rick Waugh.
According to a proxy filing released on Thursday, Mr. Porter received nearly $8.9-million in 2014 – which includes a base salary of $1-million, an incentive award and deferred compensation – up from total compensation of just over $7-million in 2013, when he served as president.
In his last year as chief executive, Mr. Waugh received total compensation of $11.1-million.
"The bank has made significant strides under the first year of Mr. Porter's leadership as President and CEO in advancing our focus priorities: being more focused on our customers, enhancing our leadership depth, diversity and deployment, and being better organized to serve our customers and reduce structural costs," the filing said.
More specifically, Mr. Porter has sold the bank's stake in CI Financial Corp.; concentrated its international attention on Chile, Colombia, Mexico and Peru; remade his top executive ranks with new appointments; and cut costs by reducing the bank's workforce by 1,500 positions.
Still, the biggest challenges ahead are likely related to how Scotiabank handles bumps in the Canadian economy. Growth slowed to 2.4 per cent in the fourth quarter, at an annualized pace, and economists expect growth to slow even further as a result of the indirect impact of depressed oil prices – making it a difficult environment for Canadian lenders.
In its first-quarter results released earlier this week, Scotiabank reported earnings rose just 1 per cent from last year, though executives expect the second half of the year to show noticeable improvement.
David Berman