Toronto-Dominion Bank CEO Ed Clark will get a lifetime annual pension of $2.23m after stepping down as head of the firm.
Bloomberg reports that Clark, 66, is set to retire November 1st after leading the bank for almost 14 years. As part of his employment agreement, Clark’s pension payout will continue 'unreduced' to his surviving spouse for her lifetime following his death, the firm said in a filing with Canadian regulators.
The lifetime pension was determined using the annual average of Clark’s highest consecutive 36 months’ salary and a percentage that became fixed in October 2010, when his pension benefits were frozen with no further accruals, according to the filing. The firm’s 'supplemental executive retirement plan' was closed to new members in 2009, the filing shows.
'This is a compensation element that has been decreasing in prevalence', said Joe Sorrentino, Managing Director at Steven Hall & Partners, a 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'.
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