Louis Vachon

Louis Vachon CM (French: [lu.i vaʃɔ̃]; born 1962) is a Canadian banker, financier, and business executive. He is currently the chief executive officer of National Bank of Canada, the 6th largest bank in Canada. He has been CEO since 2007, previously serving as the bank's chief operating officer. Before taking a full-time position at the bank, he was the president and CEO of National Bank Financial Group, the 4th largest investment bank in Canada.[1]

Louis Vachon
Born1962
Quebec, Canada
CitizenshipCanadian
Alma materBates College
Tufts University
OccupationBanker, financier, and business executive
Years active1985 - present
EmployerNational Bank of Canada (1996-present)
Bankers Trust (1990 - 1996)
Citibank (1985 - 1986)
Known forLeading the National Bank of Canada as CEO
Board member ofGroupe CH
Molson Coors Brewing Company
OSMO Foundation

He was named CEO of the Year by Canadian Business in 2014,[2][3] and the following year he received mixed media coverage for being the highest compensated banking executive in the country.[4][5][6] Vachon is an Officer of the Ordre national du Québec.[7] He is a Member of the Order of Canada[8] and of the Ordre de Montréal and recipient of the Global Citizens Award from the United Nations Association in Canada.[9]

Early life and education

Vachon was born in 1962, in Quebec, Canada.[10] His family started an eponymous pastry company and his father served as the Dean of School of Business at Sherbrooke University.[11] He spoke about his upbringing in Canadian Business, stating, "Being a successful business person was highly valued in our family."[12]

He entered Bates College, in Lewiston, Maine in 1979 and became interested in finance early on. Paul Erdman's The Billion Dollar Sure Thing played a role in his interest and shaped his early thoughts on financial markets. Vachon graduated from college in 1983, with a B.A. in economics, and went on to graduate from The Fletcher School of Tufts University, with an M.A. international finance.[13] Vachon is a chartered financial analyst (CFA).[14]

Banking career

Vachon began his career in 1985 at Citibank and joined Lévesque Beaubien Geoffrion in 1986. He then moved to Bankers Trust in 1990 where he stayed for six years.

National Bank Financial

Vachon became the president and chief executive officer of Innocap Investment Management, a subsidiary of National Bank of Canada in 1996. In 1997, he became a vice president in the firm, charged with its treasury and overseeing its financial markets. He eventually became the CEO and president of National Bank Financial, the 4th largest investment bank in Canada.[1] During the 2008-2009 financial crisis, the investment bank was one of the only financial institutions to see profit through the crisis.[15] In early 2009, the board of the bank offered him a $1.9 million bonus for his actions during the crisis.[15]

National Bank of Canada

Vachon was appointed President and Chief Executive of National Bank of Canada on February 2, 2007.[16][17][18] In November 2012, Vachon announced that the bank was letting go of nearly 300 jobs in order to tighten expenses and create a streamlined infrastructure. The move was seen, as well, as an economic contraction and had caused Moody's Investor Service to reduce the bank's credit rating down one level while also projecting it might drop it down two levels at the conclusion of the month. Despite the drop in credit rating, the bank stated that Vachon's vision for the future remained unchanged.[19]

His compensation totaled $7,618,503 in 2015, with a base pay of $1,083,333, with other compensation adding up to $6,344,803.[20] Although he heads the 6th largest bank in Canada, he was the most compensated banking executive in 2015.[4][5][6] He was criticized for sitting on too many boards as CEO, however Vachon rebutted the claim saying that it was "odd" to say to a CEO, "you can’t sit on an external board even though your company is a major shareholder."[21]

In a December quarterly earnings call with investors and analysts, Vachon stated that the bank had increased positive operating leverage in their common equity and increased its quarterly dividend twice during the fiscal year—close to 7%.[22]

Personal life

Vachon resides in Montreal, Quebec. On November 25, Vachon along with the Mayor of Montreal, Denis Coderre, unveiled an art installation piece that displayed along a six-kilometre (3.73 mile) stretch of Autoroute 20 in honor of Montreal's 375th anniversary. He said that Montreal was "a dynamic city with a reputation for innovation" later noting that "every day, hundreds of thousands of people travel along the stretch of highway between the airport and downtown Montreal, [and this art piece will be] exactly what people will see as they drive into town."[23]

Awards and honours

Vachon has received numerous awards and honors for his work in Canadian investment banking and corporate leadership.

References
  1. "National Bank of Canada boosts dividend as profit rises - BNN News". www.bnn.ca. Retrieved 2016-03-03.
  2. "CEO of the Year 2014: Louis Vachon of National Bank". Canadian Business - Your Source For Business News. Retrieved 2016-03-03.
  3. "National Bank chief honoured - Article - investmentexecutive.com". investmentexecutive.com. Retrieved 2016-03-03.
  4. "CEO of Canada's smallest bank makes the most money". Financial Post. Retrieved 2016-12-13.
  5. "Canada's Top 100 highest-paid CEOs". Canadian Business - Your Source For Business News. 2015-01-20. Retrieved 2016-12-13.
  6. "CEO Of Canada's Smallest Major Bank Earns The Most". The Huffington Post. 2012-04-05. Retrieved 2016-12-13.
  7. "Louis Vachon – Ordre national du Québec". www.ordre-national.gouv.qc.ca. Retrieved 2020-02-03.
  8. "The Governor General of Canada".
  9. http://unac.org/una-canada-is-pleased-to-recognize-louis-vachon-president-ceo-of-banque-nationale-as-our-70th-guest-of-honour-at-the-2016-global-citizen-dinner/
  10. "National Bank of Canada boosts dividend, posts 12% rise in Q2 profit". Proactiveinvestors NA. 2015-05-27. Retrieved 2016-03-03.
  11. "National Bank's paper woes will stick to Vachon". The Globe and Mail. Retrieved 2016-12-13.
  12. "CEO of the Year 2014: Louis Vachon of National Bank". Canadian Business - Your Source For Business News. Retrieved 2016-03-03.
  13. "CEO of the Year 2014: Louis Vachon of National Bank". Canadian Business - Your Source For Business News. Retrieved 2016-03-07.
  14. "Louis Vachon at NBC" (PDF).
  15. "Bank Nerd » Blog Archive Notable and Influential Banking Leaders in Canada » Bank Nerd". banknerd.ca. Retrieved 2016-12-13.
  16. "CEO of the Year 2014: Louis Vachon of National Bank". Canadian Business - Your Source For Business News. Retrieved 2016-03-03.
  17. "Mr. Louis Vachon, President and Chief Executive Officer, National Bank of Canada | Finance Montréal". www.finance-montreal.com. Retrieved 2016-03-03.
  18. "Governance - Executive Committee | National Bank". www.nbc.ca. Retrieved 2016-03-03.
  19. "National Bank to slash 300 jobs, including 10 vice-presidents". Financial Post. Retrieved 2016-12-13.
  20. "Canada's Top 100 highest-paid CEOs". Canadian Business - Your Source For Business News. Retrieved 2016-03-03.
  21. "Why some shareholders don't like 'overboarding'". The Globe and Mail. Retrieved 2016-12-13.
  22. Transcripts, SA (2016-12-02). "National Bank of Canada's (NTIOF) CEO Louis Vachon on Q4 2016 Results - Earnings Call Transcript". Seeking Alpha. Retrieved 2016-12-13.
  23. "National Bank Unveils BLEU DE BLEU". www.newswire.ca. Retrieved 2016-12-13.
  24. "Vachon leads Top 25 - Back Issue". investmentexecutive.com. Retrieved 2016-03-03.
  25. http://www.lesfusiliersmont-royal.com/blog/2016/05/02/lhomme-de-communications-luc-lavoie-honore-pour-service-meritoire/
  26. "Canadian Business 2014 CEO of the Year: Louis Vachon of National Bank". www.canadianbusiness.com. Retrieved 2020-02-03.
  27. "U Bishops". Archived from the original on 2016-10-10.
  28. "VACHON, Louis".
  29. "Ryerson University to honour Phyllis Yaffe, Heather McGregor, Bonnie Schmidt and Louis Vachon, June 12–16".
  30. "Concordia awards 10 new honorary doctorates". www.concordia.ca. Retrieved 2020-02-03.
  31. "Helping Children Rise: Right To Play's The Heroes Gala". www.righttoplay.ca. Retrieved 2020-02-03.
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