TD Bank CEO takes 4.4 pct pay cut in 2012

TORONTO: Toronto-Dominion Bank, Canada's second largest, cut the pay of its chief executive by 4.4 percent in 2012 due to costs related to litigation reserves taken by the bank and other performance factors, TD said on Thursday.

Ed Clark, who became CEO in 2002 and has hinted he's near the end of his tenure, was paid total compensation of C$10.9 million ($10.70 million) for the year, down from C$11.4 million in 2011, TD said in a filing.

His pay included C$1.5 million in salary, a cash bonus of C$1.7 million, C$5 million in stock awards, and C$2.5 million in options awards.

The bank's net profit rose 7 percent to C$6.5 billion in fiscal 2012. The result included a C$248 million litigation reserve taken to cover costs related to a $1.2 billion Ponzi scheme run by Florida lawyer Scott Rothstein.

TD was ordered to pay $67 million in January after losing a Miami verdict related to its involvement in the case, and then settled a separate lawsuit related to the case.

"(The reserves) represented a significant financial expense that impacted the bank, and as a result adjustments to compensation were considered appropriate," the bank said in the filing.

The bank also took other performance factors into account in determining the compensation, it said.

TD is Canada's second-largest by market capitalization and has branch banks spread through Canada and the United States.

Clark's pay lags the C$12.6 million awarded to Gord Nixon, the CEO of rival Royal Bank of Canada.