If I Made $3.8 Million I’d Show Fiscal Restraint Too
This was from 2009. I haven’t heard of any more such examples of fiscal restraint.
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 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 foregoingÂ $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 Dream never dies, just the Dreamers.