Royal Bank of Canada chief executive Gord Nixon was paid $11 million last year, reveals the proxy circular filed by the bank Monday.

Of Nixon’s total direct compensation of $11 million, $9.6 million was variable, with $7.5 million of that paid through deferred equity-based awards with a minimum three-year deferral period.

For all executives named in the circular, between 65% and 78% of performance-based pay was deferred through equity-based awards.

The circular also gives shareholders a “say-on-pay” through a shareholder advisory vote. The circular includes the board’s recommendation that shareholders approve a non-binding resolution accepting the approach to executive compensation disclosed in the proxy.

“The board of directors establishes executive compensation programs designed to reward individual contribution to superior financial performance and sustainable long-term shareholder value,” says David O’Brien, chairman of the board. “In 2010, RBC delivered top quartile total shareholder returns for the three-year and five-year periods compared to our global peer group.”

Additionally, the circular includes four shareholder proposals from the Mouvement d’éducation et de défense des actionnaires. The bank recommends against each of the proposals.

MEDAC proposes that the board:
> adopt a policy to achieve equal representation of women on the board within 10 years;
> adopt a policy stipulating an internal pay ratio that it deems ‘ethically acceptable’ and that this be justified in the management circular; and
> adopt a policy stipulating that the bank undertakes to give up all of its subsidiaries and branches in tax havens as defined by the OECD.

In addition, MEDAC proposes that the compensation committee give shareholders more information regarding the benchmark group used to compare the competitiveness of its executive compensation and the importance placed on such comparisons in setting compensation.

The bank’s annual meeting is scheduled to take place on March 3.

IE