TORONTO - Royal Bank (TSX:RY) chief executive Gord Nixon received a pay increase last year after taking a million-dollar pay cut in 2011.
The CEO earned $12.6 million in 2012, marking a raise from $10.1 million in 2011, according to the bank's annual disclosure released Monday.
Nixon had seen his 2011 paycheque decline from $11 million in 2010, as the bank took a hit related to the sale of its U.S. regional retail banking operations and the resulting writeoff.
But the bank said the CEO met or exceeded all of the objectives set out for him by the board of directors in 2012, despite "challenging market conditions."
The bank said it delivered record earnings of $7.5 billion while it also lowered the risk on its balance sheet.
While the 2012 salaries of other bank CEOs are still to be reported, TD Bank CEO Ed Clark's pay came in at about $11.3 million in 2011, while Scotiabank's Rick Waugh earned roughly $10.6 million that year.
Royal Bank's management proxy circular showed Nixon received a base salary of $1.5 million. He also received $1.65 million in stock- and option-based awards and a $2.85-million cash bonus. He also received a $8.25-million mid- and long-term incentives.
Nixon's base salary held steady with 2011, while his stock and option rewards slipped from $5.1 million a year earlier but his cash bonus increased from $1.75 million.
The CEO's compensation was 12 per cent above target levels, an improvement over 10 per cent above targets in 2011.
Shares in the bank were down 59 cents at $61.95 in trading on the Toronto Stock Exchange.