Canadian Personal Finance Blog

Archive for February 3rd, 2009

If I Made $3.8 Million I’d Show Fiscal Restraint Too

The CEO of RBC is taking a “pay cut” to reflect that he understands that these are hard fiscal times and he wants to show fiscal restraint as well. It sounds magnanimous of him, until you read what is really happening.

CEO Gord Nixon’s actual salary ($1.4 Million) didn’t change, however his bonus did drop to $2.4 Million this year (down from $4 Million last year), but he is also shrewdly taking this bonus in RBC stock (which is a good investment, just for the dividend income). He is also foregoing $2.75 million in restricted shares he is due in short and long term compensation, which is not chicken feed either.

So to sum up CEO Gord Nixon of RBC has invested his bonus in his company shares (which could be viewed at a bargain price) and he has foregone $2.5 Million in compensation, but still received $3.8 Million in compensation (bonus + salary), somehow I have a lot of problems heralding this as a great show of fiscal frugality, and I can’t put my finger on exactly why.

The End of the Dream

As with great dreams and hopes, it seems the great dream born in the fall is starting to die. Yes, I am talking about the Arizona Cardinals losing the Super Bowl (what you thought I was talking about how the Obama led bail out package is now having more “Political Pork” added to it than a Canned Ham? Please, get your priorities right). A game group of Cardinals did the almost unthinkable and beat the might Pittsburgh Steelers. I am a Steelers fan, but I appreciate the effort by the Cardiac Cardinals.

The Dream never dies, just the Dreamers.