Results
The PSUs granted in fiscal 2019 vested on December 15, 2021, and were paid out with an overall performance multiplier of 88% (rounded). Our performance results for each performance metric of the 2019 PSU grant, the resulting performance multipliers and the weighted performance factors follow. A more detailed overview of the strategic initiatives can be found on page 51 of our 2021 Management Proxy Circular.
CWB TSR Percentile Relative to Peer Group
CWB Performance Multiplier
Weighted Performance Factor
CWB Performance
Weight
13 th
Cumulative Three-Year TSR
55.1%
0%
30% 30% 40%
0%
Three-Year Compound Growth in Adjusted EPS (1)
6.2%
89%
26.7% 61.5%
Strategic Initiatives
153.8%
Overall Performance Multiplier (potential of 0% - 200%)
88%
(1) Non-GAAP measure. See page 39 of this Circular for more details. Disclosure of adjusted measures and other non-GAAP measures can be found in the Non-GAAP Measures section of our 2022 MD&A.
2020 PSU Grant
The PSUs granted in fiscal 2020 were structured similarly to those granted in fiscal 2019, other than the changes that were made to the relative TSR component of the PSUs (as outlined below) to better align with market practice, broaden the comparison of performance to additional companies with similar historic share price movements, and to reduce the likelihood that relative performance outcomes could be unduly affected by performance comparisons against a peer group with only a small number of companies. The changes to the TSR component applied to all subsequent PSU grants.
2020 PSU Changes
Performance Cycle
Begins on November 1, 2019 and ends on October 31, 2022, aligning the measurement period with our fiscal year. Calculated using a 30-day volume weighted average price (VWAP) (calendar, not trading), ending on October 31. Performance is measured against the constituents of each of the S&P/TSX Capped Financials Index and the S&P Canada Small Cap Index. Companies in the S&P Canada Small Cap Index operate in similar markets and have similar market capitalization and share price volatility characteristics as CWB, while companies in the S&P/TSX Capped Financials index include CWB’s closest business peers and other capital market peers in the financial services sector. These indexes replace the former PSU peer group shown on page 47.
Performance Peer Group
Benchmark TSR Calculation
TSR calculated independently for each index weighted as follows: • 60% S&P/TSX Capped Financials Index • 40% S&P Canada Small Cap Index
Performance Multiplier
Performance multiplier will be calculated according to the following schedule, with linear interpolation determined between the percentile ranks shown below:
CWB’s TSR Ranking
Performance Multiplier
Below 25 th Percentile
0%
25 th Percentile
50%
Median
100%
80 th Percentile and above
200%
Results
The PSUs granted in fiscal 2020 vested on October 31, 2022, and were paid out with an overall performance multiplier of 85% (rounded). Our performance results for each performance metric of the 2020 PSU grant, the resulting performance multipliers and the weighted performance factors follow:
CWB TSR Percentile Relative to Peer Group
CWB Performance Multiplier
Weighted Performance Factor
CWB Performance
Weight
1 st
Cumulative Three-Year TSR (S&P/TSX Capped Financials) Cumulative Three-Year TSR (S&P Canada Small Cap) Three-Year Compound Growth in Adjusted EPS 1
-23% -23%
0% 0%
18% 12% 30% 40%
0% 0%
21 st
6%
81%
24% 61%
Strategic Initiatives
152%
• Continued to put in place the key products, services, structures, and people management practices to improve our client experience, broaden client relationships, and expand brand awareness with our target mid-market commercial client. • Made strong progress growing full-service business relationships and franchise deposits, and excellent progress in our Ontario expansion, including strong momentum through the opening of our Mississauga Banking Centre. • Opened our second full-service Ontario banking centre in Markham. • Significantly strengthened our position in Central/Eastern Canada through our Wealth acquisition, while enhancing our full-service offering and experience through the addition of complex financial planning. • Continued to enhance our Voice of the Client Research Program and maintained very strong NPS for business and personal clients. • Strengthened CWB’s brand across Canada through targeted campaigns and enhancements in how we leverage digital and social media to reach our target clients in a compelling manner.
Strengthen Client Relationships
175%
13%
23%
Canadian Western Bank- Management Proxy Circular | 48
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