Bloomberg: TD's Clark to Get $2.23 Million Lifetime Pension

Bloomberg: TD’s Clark to Get $2.23 Million Lifetime Pension

March 3 2014

By Doug Alexander
Feb 21, 2014

Excerpt:

Toronto-Dominion Bank (TD) Chief Executive Officer Ed Clark will get a lifetime annual pension of C$2.49 million ($2.23 million) after stepping down as head of Canada’s largest lender by assets.

“This is a compensation element that has been decreasing in prevalence,” said Joe Sorrentino, managing director at Steven Hall & Partners LLC, a New York-based consulting firm. “When it was put in place it was pretty common practice, but over time we’ve seen the decline in these types of programs.”

Pensions started to fall out of fashion in the late 1990s and early 2000s, after drawing more scrutiny from shareholders, Sorrentino said.

“We saw some pretty large payouts in pensions and retirement benefits and those big numbers drew the ire of investors and was a focus of the press,” he said. “It’s also pretty costly to have these types of programs in place, so from a cost-cutting perspective that was definitely something that was a reason to curtail their usage.”

The ability to transfer pensions to a surviving spouse used to be fairly typical, though transferring the full amount is “more generous” than usual, Sorrentino said.

Link to full article: http://www.bloomberg.com/news/2014-02-21/td-s-clark-to-get-2-23-million-lifetime-pension.html