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"Integrity in all that we do" is a key value at
RBC. It permeates our practices,
leadership and disclosure, our risk
management framework, and the principles,
codes and policies that guide our decision-making. We
believe that by operating with integrity, we can fulfill our
responsibilities to our stakeholders and maintain their trust.
Learn about mutual funds and
governance.
Priorities
- Demonstrate sound corporate governance principles
- Provide clear disclosure of financial results, and disclose
reliable performance data on key non-financial items
- Comply with all applicable laws and regulations in every
country in which we operate
- Conduct business with honesty and integrity
Performance Highlights
Over the past few years RBC has:
- Adopted policies requiring directors to tender their resignations
following the Annual Meeting if they fail to receive majority
shareholder support
- Increased the minimum share ownership guideline for directors
to $500,000 from $300,000, to strengthen alignment of their
interests with those of shareholders
- Increased minimum share ownership requirements for executive
officers to further align management and shareholder interests
- Implemented a performance deferred share program to further
align management's interests with those of shareholders
- Limited share dilution by reducing the number of stock
option grants awarded to management by 70 per cent since
2003
- Evolved our comprehensive Director Independence Policy,
which contains more stringent criteria for members of the
Audit Committee, in response to best practices and regulatory
refinements
- Held regular meetings of independent directors
- Enhanced our board and director evaluation procedures,
with written peer reviews added to complement the established
peer assessment practice of one-on-one interviews with the
Chairman
- Formalized the process of selecting individuals for nomination
as directors to ensure that the strengths of potential candidates
are weighed against the competencies and skills that the
board as a whole requires
- Enhanced disclosure in our Management Proxy Circular to
improve transparency in our communications.
Issues
- Executive
compensation: Shareholders, regulators and the general public
are demanding increasing levels of accountability and transparency
regarding executive compensation. Over the past few years,
we have adopted many significant and leading governance
practices in this area.
- Risk management:
It is widely believed that weaknesses in risk management
and internal controls among some financial institutions
contributed to industry and economic distress during the
financial crisis. Effective management of risk is a core
competency at RBC, supported by a strong risk culture and
an effective enterprise risk management framework.
- Anti-money
laundering, anti-terrorism and economic sanctions: Illegal
activities, including terrorism, require access to funds.
Financial institutions are required to be increasingly vigilant
in monitoring for possible illegal activities and to avoid
financing them. Our Global Anti- Money Laundering Compliance
Group is dedicated to the continuous development and maintenance
of policies, guidelines, training and risk assessment tools
and models to help our employees deal with ever-evolving
money laundering and terrorist financing risks.
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