UPDATE 1-CIBC chief executive took 2009 pay cut, bank says

* CEO McCaughey paid C$6.24 mln in 2009

* Applauded for overall performance at bank’s helm

(Adds details on compensation framework)

TORONTO , Feb 4 (BestGrowthStock) – Canadian Imperial Bank of
Commerce (CM.TO: ) slashed its chief executive’s compensation in
2009, amid changes to compensation structure and reflecting
board disappointment over bank exposure to structured credit.

Even though the board was pleased that CEO Gerry McCaughey
helped the company navigate through last year’s market
turbulence, it paid him C$6.24 million ($5.83 million), down
from C$8.16 million in 2008. The figures account for all direct
compensation: base salary, annual cash bonuses and longer-term

“This reflects both the change to our compensation
framework and the board’s view of CIBC’s performance, which was
strong in some core business areas but disappointing in other
areas, particularly the bank’s continued exposure to structured
credit,” CIBC said in a proxy circular released on Thursday.

The board said in the proxy it changed the way it pays its
top officers to make compensation subject less to short-term
market movements and cut the range of pay for top executives.

CIBC’s profit jumped 48 percent in its fiscal fourth
quarter of last year, driven by gains related to its structured
credit run-off business, volume growth in retail products and
lower trading-related interest expenses.

At the time, Canada’s fifth-largest bank said the money it
set aside for credit losses surged 91 percent to C$424 million,
primarily due to higher losses in the cards, unsecured personal
lending and corporate lending portfolios.

“Overall, the board believes Mr. McCaughey and his team
have made significant progress under difficult circumstances
and can be credited with navigating CIBC through the global
financial crisis, while reducing risk and positioning the Bank
for future success,” the board said in its proxy.

McCaughey’s fiscal 2007 compensation was C$5.3 million,
reduced by the board and then voluntarily by McCaughey
following the impact of CIBC’s structured credit exposure.

($1=$1.07 Canadian)

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(Reporting by Pav Jordan; Editing by Valerie Lee)

UPDATE 1-CIBC chief executive took 2009 pay cut, bank says