Description: Doug McGregor, head of RBC’s capital markets operation, earned $13.25 million in 2014. That’s a pretty fair payday, no doubt. But one of the surprising things about it is that it outstripped the pay of his boss, RBC CEO Dave McKay. According to proxy circulars, at the other Canadian banks pay for their heads of capital markets topped out at about $8 million.
Source: Globe and Mail.com
Date: March 19, 2015
1) Why do you think Mr. McGregor’s pay was higher than that of his CEO? What might accounting theory suggest about this?
2) Why do you think Mr. McGregor’s pay was so much higher than his peers at the other Canadian banks?
3) How will the RBC have to account for Mr. McGregor’s deferred compensation?