Description of a real executive compensation

The task of each group is to perform a diligent research activity to

identify and properly describe the major features of the compensation
scheme of the executive in the indicated company during the detailed
period. The report is worth 20% and a print copy is due at the
beginning of Session #9.
The report should include and discuss the following (5 pages max):
Amount of compensation (average annual or just for one year);
Main drivers of the compensation (describe the most important
measures that were used to grant a certain level of
compensation);
Return or profit reported by the company in the same period;
Tenure as CEO: length, reason(s) for end of relationship or job,
estimated value of severance package;
In your opinion the performance of the firm reflected the factors
controllable by the top management? Explain.
Identify at least one factor non controllable by the firms top
managers and that in turn have a significant impact on the
companys performance. The CEO compensation was affected by
that non-controllable factor? Explain.
In your opinion, did the compensation plan of the executive
induced him/her to take actions that were detrimental to the
company? Explain or provide one example.
In Winter 2015 the Description of a Real Executive compensation is
focused in one industry: Banking. The report will address the issues
mentioned above but also will include the following:
Dollar amount set aside by the bank in fiscal 2013 for incentive
(variable) compensation (whole company, nit just the CEO);
Change of that amount compared with 2012, 2011 and 2010;
Indicate which line of businesses (segment) in each bank have
been underperforming or outperforming in fiscal 2013:
investment banking, fixed-income, commodities trading, retail,
lending, etc.
Indicate if the amounts reserved for variable compensation for
fiscal 2014 have been estimated and what is the change if
compared with 2013 (if there are no financial statements, press
releases will be fine).
Finally your group might want to discuss the following items if relevant:
Does executive compensation in this bank advance, impair or is
it disconnected from desired behaviour?

 Does it promote the right level of risk taking behaviour?

How should executive pay be structured in this bank or
banking industry in general?
What role should shareholders play (if any) in executive
compensation decisions?
What role should government play in executive
compensation decisions?

Each group will be assigned the name of an executive or a company

and a time period. The task of each group is to perform a diligent
research activity to identify and properly describe the major
features of the compensation scheme of the executive in the
indicated company during the detailed period. The report is worth
20% and a print copy is due at the beginning of Session #9. The
report should include and discuss the following in no more than 5
pages (2.54 cm margins, 12 point times new roman font, and 1.5
line spacing):
Amount of compensation (average annual or just for one
year);
Main drivers of the compensation (describe the most
important measures that were used to grant a certain level of
compensation);
Return or profit reported by the company in the same period;
Tenure as CEO: length, reason(s) for end of relationship or job,
estimated value of severance package;
In your opinion the performance of the firm reflected the
factors controllable by the top management? Explain.
Identify at least one factor non controllable by the firms top
managers and that in turn have a significant impact on the
companys performance. The CEO compensation was affected
by that non-controllable factor? Explain.
In your opinion, did the compensation plan of the executive
induced him/her to take actions that were detrimental to the
company? Explain or provide one example.
In Winter 2015 the Description of a Real Executive compensation is
focused in one industry: Banking. A total of 5 groups will be formed
each one of the groups focused on one bank: TD, BMO, CIBC,
Scotiabank and RBC.
The report will address the issues mentioned above but also will
include the following:
Dollar amount set aside by the bank in fiscal 2013 for
incentive (variable) compensation;
Change of that amount compared with 2012, 2011 and 2010;
Indicate which line of businesses (segment) in each bank have
been underperforming or outperforming in fiscal 2013:
investment banking, fixed-income, commodities trading,
retail, lending, etc.

Indicate if the amounts reserved for variable compensation for

fiscal 2014 have been estimated and what is the change if
compared with 2013 (if there are no financial statements,
press releases will be fine).