v3.22.2.2
Related party transactions
 12 Months Ended
Oct. 31, 2022
Text Block [Abstract]  
Related party transactions
Note 26     Related party transactions
Related parties
Related parties include associated companies over which we have direct or indirect co
n
trol or have significant influence and post-employment benefit plans for the benefit of our employees. Related parties also include key management personnel (KMP), the Board of Directors (Directors), close family members of KMP and Directors, and entities which are, directly or indirectly, controlled by or jointly controlled by KMP, Directors or their close family
members.
 
Key management personnel and Directors
KMP are defined as those persons having authority and responsibility for planning, directing and controlling our activities, directly or indirectly. They include the senior members of our organization called the Group Executive (GE). The GE is comprised of the President and Chief Executive Officer, and the Chief Officers and Group Heads, who report directly to him. The Directors do not plan, direct, or control the activities of the entity; they oversee the management of the business and provide stewardship.
Compensation of Key management personnel and Directors
 
 
 
 
  
For the year ended
 
     
(Millions of Canadian dollars)
  
October 31
2022
(1)
 
  
October 31
2021
 
Salaries and other short-term employee benefits
(2)
   
$
27
 
    $ 19  
Post-employment benefits
(3)
   
 
2
 
      3  
Share-based payments
   
 
40
 
      35  
 
   
$
69
 
    $ 57  
 
(1)
 
During the year ended October 31, 2022 certain executives, who were members of the Bank’s GE as at October 31, 2021, left the Bank and therefore were no longer part of KMP. Compensation for the year ended October 31, 2022 attributable to the former executives, including benefits and share-based payments relating to awards granted in prior years was $14 million.
(2)
 
Includes the portion of the annual variable short-term incentive bonus that certain executives elected to receive in the form of DSUs. Refer to Note 21 for further details. Directors receive retainers but do not receive salaries and other short-term employee benefits.
(3)
 
Directors do not receive post-employment benefits.
Stock options, stock awards and shares held by Key management personnel, Directors and their close family members
 
      As at       
    
October 31, 2022
(1)		          October 31, 2021 (2)  
           
(Millions of Canadian dollars, except number of units)
   
No. of
units held
     
Value
           No. of
units held		      Value  
Stock options
(3)
   
 
2,409,294
 
   
$
59
 
          2,369,659      $ 81  
Other
non-option
stock based awards
(3)
   
 
914,496
 
   
 
115
 
          983,004        127  
RBC common and preferred shares
   
 
170,312
 
   
 
22
 
          183,783        24  
    
 
3,494,102
 
   
$
196
 
          3,536,446      $ 232  
 
(1)  
During the year ended October 31, 2022 certain executives, who were members of the Bank’s
GE
as at October 31, 2021, left the Bank and therefore were no longer part of KMP. Total shareholdings and options held upon their departure wa
s 569,470
 
units with a value of $34
 
million.
(2)  
During the year ended October 31, 2021 certain directors, who were members of the Board of Directors as at October 31, 2020, retired. Total shareholdings held upon their retirement wa
s 21,723 units with a value of $3 million.
(3)   Directors do not receive stock options or any other
non-option
stock based awards.
Transactions, arrangements and agreements involving Key management personnel, Directors and their close family members
In the normal course of business, we provide certain banking services to KMP, Directors, and their close family members. These transactions were made on substantially the same terms, including interest rates and security, as for comparable transactions with persons of a similar standing and did not involve more than the normal risk of repayment or present other unfavourable features.
As at October 31, 2022, total loans to KMP, Directors and their close family members were $14 million (October 31, 2021 – $14 million). We have no stage 3 allowance or provision for credit losses relating to these loans as at and for the years ended October 31, 2022 and October 31, 2021. No guarantees, pledges or commitments have been given to KMP, Directors or their close family members.
Joint ventures and associates
In the normal course of business, we provide certain banking and financial services to our joint ventures and associates, including loans, interest and
non-interest
bearing deposits. These transactions meet the definition of related party transactions and were made on substantially the same terms as for comparable transactions with third parties.
As at October 31, 2022, loans to joint ventures and associates were $251 million (October 31, 2021 – $340 million) and deposits from joint ventures and associates were $20 million (October 31, 2021 – $13 million). We have no
St
age 3 allowance or provision for credit losses relating to loans to joint ventures and associates as at and for the years ended October 31, 2022 and October 31, 2021. $1 million of guarantees have been given to joint ventures and associates for the year ended October 31, 2022 (October 31, 2021 – $1 million).
Other transactions, arrangements or agreements involving joint ventures and associates
 
 
 
 
  
As at or for the year
ended
 
     
(Millions of Canadian dollars)
  
October 31
2022
 
  
October 31
2021
 
     
Commitments and other contingencies
   
$
829
 
    $ 1,017  
Other fees received for services rendered
   
 
50
 
      48  
Other fees paid for services received
   
 
107
 
      108