2008 compensation of National Bank Financial Group President and CEO – Correction requested to study published by independent body

Montreal, 5 January 2010 - 

National Bank Financial Group would like to correct the inaccurate information published by the Canadian Centre for Policy Alternatives concerning the compensation of Louis Vachon, President and CEO of National Bank Financial Group, for fiscal 2008.

Contrary to what was reported in the study “A Soft Landing – Recession and Canada’s 100 Highest Paid CEOs,” the estimated value of Mr. Vachon’s total compensation for the fiscal year ended October 31, 2008 was close to $5.3 million, as approved by the Board and disclosed in the Management Proxy Circular of February 27, 2009.

Mr. Vachon’s 2008 compensation breaks down as follows: 

  • salary: $800,000
  • annual bonus: $743,900
  • stock-based compensation (restricted share units - RSUs and options): $3,200,000
  • other compensation: $175,057
  • annual cost of retirement benefits: $368,000

Therefore, the estimated value of total compensation for fiscal 2008 was $5,286,957 and not $10,488,130. This is well below the estimated average of $7,352,895 for Canadian CEOs according to the study. Mr. Vachon would thus be ranked 60th, not 17th as presented in the ranking by the Canadian Centre for Policy Alternatives.

National Bank Financial Group has notified the Canadian Centre for Policy Alternatives of this inaccuracy and has requested that a correction be made to the study.

About National Bank of Canada
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has more than $132 billion in assets and, together with its subsidiaries, employs 17,747 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at
www.nbc.ca.

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives.):

Denis Dubé
Senior Manager – Public Relations
National Bank Financial Group
Tel. 514-394-8644