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. When I hear of bankers or MP’s taking pay cuts then I’ll believe their claims of Fiscal Restraint.
The CEO of RBC is taking a “pay cut”. He wants to show that he understands these are hard fiscal times. He also wants to show fiscal restraint. 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. It was down from $4 Million last year. He is also shrewdly taking this bonus in RBC stock. RBC stock is a good investment just for the dividend income. He is also foregoing $2.75 million in restricted shares, which he is due in short- and long-term compensation, which is not chicken feed either.
CEO Gord Nixon of RBC has invested his bonus in his company shares. These shares could be viewed at a bargain price. He has foregone $2.5 Million in compensation but still received $3.8 Million in compensation (bonus + salary). Somehow, I have many problems with calling this a great show of fiscal frugality. I can't put my finger on exactly why.
The Dream never dies, just the Dreamers.
Someone who puts his money in the stock of the company he’s leading surely has the best interest in the company. Nixon is eating his own cooking as Warren Buffett would say.
True, but the fact that it’s a good investment (for the dividend value alone) makes it a little less “magnanimous” in feeling, in my opinion.