CIBC Annual Accountability Report
2006
2006 Review
1 Financial Highlights
2 Chairman’s Letter
3 Chief Executive
Officer’s Letter
5 Chief Financial
Officer’s Report
6 Our Balanced Scorecard
8 Business Overviews
30 Governance
32 Board of Directors
32 Senior Executive Team
and Senior Officers
154 Global Reporting
Indicators
13 Overview and Affiliates
14 Our Clients
18 Our Employees
22 Our Communities
26 Our Environment
144 Branch Openings
and Closings
144 ABM Installations
and Removals
147 Debt Financing to Firms
in Canada
148 Employment in Canada
148 Taxes in Canada
149 Community
Contributions
Inside Back Cover
Contact Information
Public Accountability
Statement
In this report
Corporate Profile
CIBC is a leading North American financial institution. Through our two distinct business
lines, CIBC Retail Markets and CIBC World Markets, CIBC provides a full range of products
and services to almost 11 million individual and small business clients and meets the financial
needs of corporate and institutional clients. In 2006, revenue was $11.3 billion and net income
was $2.6 billion. At year-end, market capitalization was $29.4 billion and Tier 1 capital ratio
was 10.4%.
CIBC Annual Accountability Report 2006
Management’s
Discussion and Analysis
34 A Note about Forward-
looking Statements
35 Overview
46 Business Line Review
53 Management of Risk
67 Off-balance Sheet
Arrangements and
Contractual Obligations
70 Other
Financial Results
77 Financial Reporting
Responsibility
78 Independent Auditors’
Reports to Shareholders
80 Consolidated Financial
Statements
84 Notes to the
Consolidated Financial
Statements
131 Principal Subsidiaries
132 Supplementary Annual
Financial Information
139 Quarterly Review
140 Ten-year Statistical
Review
Shareholder and
Other Information
142 Glossary
155 Shareholder Information
350
250
200
150
100
50
0
-50
Oct 96 Oct 98 Oct 00 Oct 02 Oct 04 Oct 06
CIBC S&P/TSX Composite Banks Index S&P/TSX Index
Share Price Appreciation (%)
2006 Accomplishments
Consistent, sustainable performance over the long term
Who we are: CIBC is focused on helping clients
meet their financial needs and achieve what
matters to them. Our ability to develop deeper
and long-lasting relationships with clients and
to generate long-term growth for shareholders
is driven by a business culture based on common
values: Trust, Teamwork and Accountability.
CIBC’s share price appreciation of 215% over the past 10 years well exceeded
the appreciation of 120% for the broad market. When combined with dividend
yield, CIBC’s total return for the past 10 years was 335%.
3.00
2.50
2.00
1.50
1.00
0.50
0.00
96 98 00 02 04 06
Common Share Dividend Appreciation ($)
CIBC has increased its annual common share dividend in nine of the past 10 years.
CIBC’s dividends per common share for 2006 were $2.76 compared with $2.66
in 2005.
CIBC Annual Accountability Report 2006 CIBC Annual Accountability Report 2006
Where we’re going:
Our vision is to be the leader
in client relationships. Our mission is to fulfill
the commitments we have made to each of
our stakeholders:
- Help our clients achieve what matters to them
- Create an environment where all employees
can excel
- Make a difference in our communities
-
Generate strong total returns for our shareholders
Creating value: CIBC’s objective is consistent,
sustainable performance over the long term. Our
most important performance benchmarks are:
- Client satisfaction
- Employee work environment
- Community investment
- Risk management
- Governance
- Financial performance
Strategic priorities:
In 2007, we remain focused
on our three priorities:
- Business strength
- Productivity
- Balance sheet strength and capital usage
Performance measurement: Disciplined
measurement of our performance is critical
to our long-term success. We have several
measures to track our progress over the
medium and longer term. Our balanced
scorecard objectives and results are detailed
on pages 6 and 7.
Employee work environment
-
Invested approximately $56 million
in training globally
-
Launched a new development program
to 2,300 employees to further instill
CIBC’s vision, mission and values
Community investment
- Raised $23.4 million to fight breast
cancer through the 2006 Canadian
Breast Cancer Foundation CIBC Run for
the Cure
-
Raised $10.5 million globally, including
$3.7 million in Canada, in December
2005 through the CIBC World Markets
Miracle Day
Risk management
-
Implemented enhanced risk management
systems and processes required for
adoption of Basel II, well positioning
CIBC for regulatory approval in 2007
-
Improved loan loss rates on personal
loans and shifted to higher quality in
new accounts
Governance
- Recognized by the Canadian Coalition
for Good Governance for exemplary
disclosure and for demonstrating best
practices in shareholder communications
- Tied for 5th place in the Globe and
Mail’s Report on Business corporate
governance ranking
Financial performance
-
Total shareholder return of
25.6%, highest among the major
Canadian banks
-
Diluted earnings per share of $7.43
and
return on equity of 27.9% exceeded
our medium-term targets
- Annual expense reductions of
$272 million exceeded our 2006
target of $250 million
Client satisfaction
-
Ranked #1 in a number of client service
metrics, including providing advice to
clients in choosing appropriate products,
branch staff’s professionalism and their
willingness to resolve problems
-
Launched enhanced ABM and online
banking features to make it easier and
more convenient for clients to manage
their finances
1
CIBC Annual Accountability Report 2006
040302 05 06 040302 05 06 040302 05 06
Earnings (loss) per share (EPS)
($)
1.35 5.18 5.53 (0.46) 7.43
Return on equity (ROE)
(%)
5.1 19.2 18.7 (1.6) 27.9
Tier 1 capital ratio
(%)
8.7 10.8 10.5 8.5 10.4
00 0
Financial Highlights 2006
As at or for the year ended October 31 2006 2005 2004 2003 2002
Common share information
Per share – basic earnings (loss) $ 7.50 $ (0.46) $ 5.60 $ 5.21 $ 1.37
– diluted earnings (loss) 7.43 (0.46)
(1)
5.53 5.18 1.35
– dividends 2.76 2.66 2.20 1.64 1.60
Share price – closing 87.60 72.20 73.90 59.21 38.75
Shares outstanding (thousands) – end of period 335,977 334,008 347,488 362,043 359,064
Market capitalization ($ millions) $ 29,432 $ 24,115 $ 25,679 $ 21,437 $ 13,914
Value measures
Price to earnings multiple (12-month trailing)
(2)
11.8 n/m 13.4 11.4 28.7
Dividend yield (based on closing share price) 3.2% 3.7% 3.0% 2.8% 4.1%
Dividend payout ratio 36.8% n/m 39.2% 31.5% 117.2%
Financial results ($ millions)
Total revenue $ 11,332 $ 12,473 $ 11,775 $ 11,463 $ 10,930
Provision for credit losses 548 706 628 1,143 1,500
Non-interest expenses 7,469 10,840 8,251 8,128 9,129
Net income (loss) 2,646 (32) 2,091 1,950 542
Financial measures
Efficiency ratio 65.9% 86.9% 70.1% 70.9%83.5%
Efficiency ratio (TEB)
(3)
64.6% 85.6% 69.2% 70.1%82.7%
Return on equity 27.9% (1.6)% 18.7% 19.2% 5.1%
Net interest margin 1.52% 1.71% 1.87% 1.94% 1.84%
Total shareholder return
(2)
25.6% 1.3% 29.0% 57.9% (17.9)%
Balance sheet information ($ millions)
Loans and acceptances $ 151,916 $ 146,902 $ 142,282 $ 139,073 $ 143,917
Total assets 303,984 280,370 278,764 277,147 273,293
Deposits 202,891 192,734 190,577 188,130 196,630
Common shareholders’ equity 9,941 8,350 10,397 10,421 9,245
Balance sheet quality measures
Common equity to risk-weighted assets 8.7% 7.2% 9.0% 9.0% 7.3%
Risk-weighted assets ($ billions) $ 114.8 $ 116.3 $ 115.9 $ 116.3 $ 126.5
Tier 1 capital ratio 10.4% 8.5% 10.5% 10.8% 8.7%
Total capital ratio 14.5% 12.7% 12.8% 13.0% 11.3%
Other information
Retail/wholesale ratio
(4)
72%/28% 70%/30% 72%/28% 64%/36% 48%/52%
Regular workforce headcount 37,016 37,308 37,281 36,630 42,552
(1) In case of a loss, the effect of stock options potentially exercisable on diluted earnings (loss) per share will be anti-dilutive; therefore, basic and diluted earnings (loss) per share will be the same.
(2) Comparative information has been restated to conform with the presentation adopted in the current year.
(3) Taxable equivalent basis (TEB). For additional information, see the “Non-GAAP Measures” section.
(4) Retail includes CIBC Retail Markets and commercial banking (reported as part of CIBC World Markets). Wholesale reflects CIBC World Markets, excluding commercial banking. The ratio represents
the
amount of capital attributed to the business lines as at the end of the year. Prior to 2003, the ratio was based on the average capital attributed to the business lines in the year. For additional information,
see the
“Non-GAAP Measures” section.
n/m – not meaningful due to the net loss in the year.
Diluted EPS was $7.43 in 2006, compared
with $(0.46) in 2005. Diluted EPS is a
measure of net income less preferred share
dividends and premium on redemptions, divided
by the weighted-average number of diluted
common shares.
ROE was 27.9% in 2006, compared with
(1.6)% in 2005. ROE is a key measure
of profitability. It is calculated as net
income less preferred share dividends
and premium on redemptions, expressed
as a percentage of average common
shareholders’ equity.
In 2006, CIBC’s Tier 1 capital ratio improved
190 bps to 10.4%, ahead of CIBC’s target of
8.5% and ahead of the regulatory requirement
of 7.0%. The Tier 1 capital ratio is calculated by
dividing Tier 1 capital by risk-weighted assets.
CIBC Annual Accountability Report 20062
On behalf of the CIBC Board of Directors,
I am pleased to report to you, our fellow shareholders,
the positive results achieved by our team last year,
both in terms of financial performance and
governance.
Creating sustainable shareholder value
In 2006, CIBC outperformed the S&P/TSX Composite
Banks Index and delivered the best total shareholder
return among the major Canadian banks.
This strong financial performance reflects
the focused execution of CIBC’s strategies by a
diligent and experienced management team, led by
Gerry McCaughey.
On behalf of the Board, I would like to sincerely
thank Gerry, his management team and CIBC’s
employees globally for a successful year.
Leading in governance best practices
We continue to believe that good governance is an
important base for creating sustainable shareholder
value. It mitigates risks, fosters a performance culture
and provides the solid platform on which to deliver
leading financial returns.
CIBC has a long-standing commitment to
strong governance principles and maintaining an
effective implementation framework.
We continue to be recognized as a leader
in governance.
In 2006, we tied for 5th place in the annual
corporate governance rankings conducted by the
Globe and Mail’s Report on Business. We earned
full marks in disclosure and high marks in all other
categories, including board composition,
shareholder rights and the disclosure of share
ownership and compensation-related information
for executives and directors.
We are also proud that CIBC continues to be
included in a number of renowned global indices that
assess responsible business policies and practices.
CIBC has maintained its constituency in the Dow
Jones Sustainability World Index, the FTSE4Good
Index as well as the Jantzi Social Index since first being
listed on these indices.
Your Board is committed to sustaining this
leadership position. To do so, we actively monitor
developments in the area of governance, seeking
opportunities to lead, rather than follow industry trends.
Delivering transparency to stakeholders
Working with management, we remain focused on
providing our shareholders with enhanced financial
and operational transparency, as evidenced by the
corporate governance actions CIBC took in 2006.
Our recent adoption of majority voting for
directors and a new CEO compensation model are two
examples of how the thoughtful voice of shareholders
can evolve into governance action.
Listening to you, our shareholders, and
responding to your needs is crucial to our ongoing
success. For this reason, I and other members of the
Board meet regularly with a wide variety of stakeholder
groups including large investors, rating agencies,
regulatory and government bodies as well as non-
governmental organizations.
We are totally committed to engaging with
our stakeholders and being at the forefront of best
practices in governance.
Looking forward
Your Board is dedicated to the strategic oversight of the
business and affairs of CIBC. I know that every director
accepts full accountability to provide independent and
constructive guidance to management in fulfilling
their objectives.
We are completely aligned with management
in their efforts to enhance long-term shareholder
value, and remain steadfast in serving the
interests of our fellow shareholders through
leadership in our governance initiatives.
Chairman’s
Letter
William A. Etherington
Chairman of the Board
3
CIBC Annual Accountability Report 2006
CIBC made solid progress in 2006
towards our objective of delivering consistent and
sustainable performance over the long term.
CIBC’s earnings this year were a record
$2.6 billion. Return on equity was 27.9%. Total
shareholder return was 25.6%, highest among the
major Canadian banks.
Over the past year, we have been laying the
foundation to move CIBC forward.
I outlined in my 2005 letter our focus on
three key priorities:
•
Maintaining business strength
•
Improving productivity
•
Building our balance sheet strength
In 2006, we made progress in each of these areas.
Business strength
CIBC’s retail businesses continued to perform well
overall in 2006.
CIBC Retail Markets net income was $1,858
million, up 18% from 2005.
Volume growth, as well as improvements in
expenses, loan losses and taxes, all contributed to
this result.
The foundation of our retail franchise
remains strong and well positioned in a competitive
domestic market place.
We are focused on strengthening our client
relationships and investing in our core retail
businesses to maintain and enhance our position.
CIBC World Markets reported solid results
in 2006.
Net income was $646 million.
Our performance reflects the progress we
have made to reduce risk and volatility in our
wholesale business.
We focused our attention and resources in
support of our client franchise, while continuing to
further reduce our merchant banking portfolio.
We continue to have an objective to maintain
a business mix, as measured by economic capital, of
25–35% wholesale.
Future growth in our wholesale business will
be supported in core areas of our business where
we have capacity, and within the parameters of our
target business mix.
Productivity
In our 2005 scorecard, we set a target to achieve
$250 million of expense reductions by the end
of 2006.
We have exceeded our target, delivering
$272 million of expense reductions.
In our scorecard, we continue to have a
medium-term strategic objective of a median efficiency
ratio among our Canadian bank peer group.
While our progress in 2006 is encouraging,
further improvements are required to achieve our
strategic objective.
Balance sheet strength and capital usage
Our Tier 1 capital ratio is a primary measure of our
balance sheet strength.
During the year, our ratio improved from
8.5% to 10.4%.
Our progress is a direct result of the underlying
strength of our earnings capability and the resiliency
of CIBC’s core franchise.
While building our balance sheet strength,
we balanced our capital usage.
First, we continued to invest in our core
franchise.
We continue to support growth, particularly
in areas of our business where we have scale
and expertise.
Second, we announced a significant acquisition.
CIBC reached an agreement to purchase
Barclays Bank PLC’s 43.7% share of FirstCaribbean
International Bank (FirstCaribbean). We are on track
to close this transaction by the end of 2006.
Chief Executive Officer’s
Letter
Gerald T. McCaughey
President and
Chief Executive Officer
CIBC Annual Accountability Report 20064
Chief Executive Officer’s Letter
This opportunity aligns well with our strategy
to grow our core business areas and provides us
with geographical diversification.
CIBC also has a long-standing presence in the
Caribbean region. It opened its first branch in 1920,
and acquired its current 43.7% ownership stake in
FirstCaribbean when its Canadian operations were
merged with those of Barclays to form
FirstCaribbean in 2002.
FirstCaribbean is the largest regionally-listed
bank in the English-speaking Caribbean, with assets
of US$12.4 billion and a market capitalization of
US$2.8 billion.
FirstCaribbean performed well in 2006,
reporting net income of US$171 million.
We are optimistic about growth prospects in
the region and believe FirstCaribbean can grow
through both business expansion and acquisition
opportunities.
Third, we returned capital to our shareholders.
For the ninth time in the past 10 years, we
raised our common share dividend.
Although our payout ratio for 2006 was
below our target range, we remain committed over
the medium term to paying out 40% to 50% of our
earnings in dividends.
Our employees
I want to thank all CIBC employees for their
performance in 2006. Their commitment to make
CIBC a stronger organization is reflected in our
progress. Our employees’ continued dedication to
deliver value for our clients and our shareholders
gives me confidence about our future.
2006 Summary
Our progress against our priorities has improved
CIBC’s performance:
•
Underlying earnings per share growth and return
on equity for the year were above our medium-
term targets
•
Our capital ratios are strong
•
Our business mix is within our target range
•
Our loan losses are lower
•
We achieved our 2006 productivity target
2007 and beyond
In 2007, our goal is to build on the progress we
have made.
We will remain focused on our three priorities:
•
Business strength
•
Productivity, with a particular focus on balancing
revenue growth and ongoing expense discipline
•
Balance sheet strength and capital usage
Our success requires an underlying commitment
to CIBC’s core values of trust, teamwork and
accountability. This commitment creates an
environment where we can provide exceptional
client service, our employees can excel, and we can
maintain a meaningful presence in our communities.
We look forward to further progress in 2007.
5
CIBC Annual Accountability Report 2006
In 2006, CIBC delivered record net income
and the highest total shareholder return among
the major Canadian banks.
Chief Financial Officer’s
Report
Tom D. Woods
Senior Executive Vice-President
and Chief Financial Officer
A summary of CIBC’s financial results
($ millions) 2006 2005
We earned interest on loans and other products $ 13,269 $ 11,256
We incurred interest on deposits and other liabilities 8,834 6,319
We earned Net interest income 4,435 4,937
We also earned revenue (non-interest income) on investment products,
financial services and other products 6,897 7,536
Total Revenue was (A) $ 11,332 $ 12,473
The risk associated with our credit products
resulted in loan losses of (B) $ 548 $ 706
We incurred costs to settle Enron-related litigation – 2,830
We invested in our people and our franchise:
Salaries and benefits 4,288 4,324
Our people need technology 1,111 1,166
A place to work and 562 641
Other support 1,537 2,049
We incurred income taxes 640 789
This added up to (C) $ 8,138 $ 11,799
Leaving us with Net income (loss) of (A)-(B)-(C) $ 2,646 $ (32)
CIBC Annual Accountability Report 20066
Senior Executive Team
Baxendale, S.A. (Sonia)
Senior Executive
Vice-President
CIBC Retail Markets
Capatides, M.G. (Michael)
Executive Vice-President
and General Counsel
Legal and Regulatory Compliance
Lalonde, R.A. (Ron)
Senior Executive Vice-President
Administration,
Technology and Operations
McCaughey, G.T. (Gerry)
President and
Chief Executive Officer
CIBC
Our Balanced Scorecard
Business
Mix
(1)
65–75% retail/25–35% wholesale
(as measured by economic capital).
72%/28% retail/wholesale
Business mix is within
our target range.
Risk
Maintain provision for credit losses as a percent of loans and
bankers’ acceptances, net of reverse repurchase agreements
(loan loss ratio) between 50 and 65 basis points through the
business cycle.
Our previously stated objective was to reduce the carrying value
of the merchant banking portfolio to $1.5 billion by 2007.
Our objective moving forward is to maintain the carrying value
of our merchant banking portfolio below $1.4 billion.
Loan loss ratio –
40 basis points
Merchant banking
portfolio – $1.4 billion
Our loan loss performance was better
than our medium-term objective.
We have exceeded our merchant
banking target ahead of schedule.
Productivity
and Efficiency
Achieve annual expense reductions of $250 million by the end of
2006, as measured by 2006 fourth quarter non-interest expenses,
annualized, less 2005 second quarter non-interest expenses
(excluding the $75 million provision related to hedge fund
settlements), annualized.
Achieve a median ranking within our industry group, in terms of
our non-interest expenses to total revenue (efficiency ratio (TEB)
(1)
).
$272 million of annual
expense reductions
Efficiency ratio (TEB)
(1)
–
64.6%
We exceeded our annual expense
reductions target.
CIBC’s efficiency ratio has
improved
relative to the median of our
industry group.
Dividend
Payout Ratio
40–50% (Common share dividends paid as a percentage
of net income after preferred share dividends and premium
on redemptions).
Dividend payout ratio –
36.8%
CIBC’s dividend payout ratio was
below our target range.
Total
Shareholder
Return
Our objective is to outperform the S&P/TSX Composite
Banks Index
(dividends reinvested) on a rolling five-year basis.
25.6% – for the year
ended October 31, 2006
112.6% – since
October 31, 2001
CIBC delivered the highest total
shareholder return for the year
among the major Canadian banks.
Return on
Equity
(ROE)
Our previously stated objective was return on average common equity
of 17% to 20% through the cycle (calculated as net income less
preferred share dividends and premium on redemptions expressed
as a percentage of average common shareholders’ equity).
Our objective moving forward is return on average common equity
of at least 20% through the cycle.
27.9% ROE was above our target range.
ROE was affected by items discussed in
the MD&A, Executive Summary section.
Capital
Strength
Tier 1 capital ratio target of 8.5%.
Total capital ratio target of 11.5%.
Tier 1 capital ratio – 10.4%
Total capital ratio – 14.5%
Regulatory capital ratios
were above our targets.
Earnings Per
Share (EPS)
Growth
Diluted EPS growth of 10% per annum, on average, over the next
3–5 years.
2006 EPS of $7.43,
compared with 2005 loss
per share of $0.46
2006 EPS and 2005 loss per share
were affected by items discussed in
the MD&A, Executive Summary section.
ResultsMedium-term objectives Comments
Financial Measures
(1) For additional information, see the “Non-GAAP Measures section” on page 37.
7
CIBC Annual Accountability Report 2006
Shaw, B.G. (Brian)
Senior Executive Vice-President,
CIBC and Chairman and Chief
Executive Officer, CIBC World Markets
Venn, R.E. (Richard)
Senior Executive
Vice-President
Corporate Development
Woods, T.D. (Tom)
Senior Executive Vice-President
and Chief Financial Officer
Finance
McGirr, S.R. (Steven)
Senior Executive Vice-President
and Chief Risk Officer
Treasury and Risk Management
Clients
Employees
To be the leader in client relationships
Create an environment where employees
can excel
- Improved client satisfaction
- Enhanced banking services for diverse client groups
- Improved accessibility for clients with special needs
- Won award in Best Internal Program category under Canadian Awards
for Training Excellence Program for online orientation program
- Invested approximately $56 million in training globally
-
Developed five-year plan to further strengthen sustainable leadership capability
Community Make a difference in our communities - Contributed more than $36 million to communities globally
- Raised $23.4 million through the CIBC Run for the Cure to fight breast cancer
- Raised $10.5 million on CIBC World Markets Miracle Day, December 7, 2005
- Raised more than $7.5 million for the 2005 United Way campaign
- Increased participation in the Employee as Ambassador Program, which
recognizes volunteerism
Environment Demonstrate environmental responsibility
in all activities
Governance To be a leader in governance practices - GovernanceMetrics International score – better than 90% of global banking
sector peers
- Tied for 5th place in the Globe and Mail Report on Business corporate
governance ranking
Objectives Accomplishments
A constituent of the Dow Jones Sustainability World Index
for 5 consecutive years, and a member of the Dow Jones
Sustainability North America Index since its inception in 2005
A member of the Jantzi
Social Index since its
inception in 2000
Non-Financial Measures
-
Among top-ranked North American banks for awareness and disclosure of climate
change risks and opportunities, according to the Carbon Disclosure Project
-
Renewed our commitment to the Equator Principles for social and environmental
review in project finance
-
Consolidated and revised all environmental credit risk standards and procedures
Listed on the FTSE4Good Index
since its inception in 2001
CIBC Annual Accountability Report 20068
CIBC Retail Markets
CIBC Retail Markets comprises CIBC’s retail and wealth management businesses. We provide a full range of financial
products and services to almost 11 million individual and small business clients, as well as investment management services
to retail and institutional clients globally. In addition, we hold a 43.7% interest in FirstCaribbean International Bank. In June
2006, we entered into an agreement to purchase Barclays Bank PLC’s 43.7% share of FirstCaribbean.
Strategy
CIBC Retail Markets’ objective is to become the
primary financial institution for our clients.
Our strategy is to develop strong relationships
by meeting more of our clients’ financial needs.
To do this, we will extend our affluent client
experience to more of our clients, continue to
enhance product competitiveness and leverage
our strong retail and wealth distribution channels.
We are also focused on enhancing our operational
effectiveness to expand our market penetration
and increase client satisfaction while positioning
our business for long-term success.
Priorities
- Grow our business
by building strong
relationships with
our clients
- Increase operational
effectiveness
- Continue to improve
the quality of our
lending portfolio
Measures
- Client satisfaction
- Product market share
- Funds managed
for clients
- Credit quality
9CIBC Annual Accountability Report 2006
Operating Highlights:
04 05 06
220.7 235.1
Total average
funds managed
($ billions)
246.3
Efficiency ratio
(%)
62.7 62.8 61.3
04 05 0604 05 06
Net income after tax
($ millions)
1,406 1,573 1,858
Return on equity (ROE)
(1)
(%)
37.0 42.2 49.7
04 05 06
0000
(1) For additional information, see the “Non-GAAP Measures” section on page 37.
Our objective is to be the primary
financial institution for our clients. Our success
depends on building strong relationships and on our
ability to help clients achieve their financial goals.
Improving service for our clients
This year CIBC Retail Markets focused on enhancements
that help us serve our clients better. As part of this,
we opened nine branches offering a full range of
personal, small business and financial planning services.
Enhanced online and ABM features have made
banking at CIBC more convenient. Clients can now
access more statement details and make additional
loan payments online, while our new ABMs include
express withdrawals, easier bill viewing and a
deposit calculator.
Small business owners can now open
accounts in all CIBC branches and we introduced a
new Convenience Card feature allowing owners to
assign select access rights to delegates.
Our summer promotion offered clients up to
25,000 bonus Aeroplan Miles for choosing featured
day-to-day banking products. This helped to increase
the number of products that clients have with CIBC.
Investor demand for our CIBC Personal
Portfolio Services and Axiom portfolios contributed to
strong managed solutions asset growth in the year.
These results were complemented by new product
launches and portfolio manager changes within our
stand-alone funds, ensuring our asset management
platform continued to meet the needs of our clients.
We also brought together our employee
training teams to deliver a more consistent client
experience across our retail businesses.
Leveraging our strength in advice
Building stronger relationships is about providing
knowledgeable advice. Our leading advisory sales
force, including over 2,500 IDA-licensed advisors and
investment specialists, enables us to offer customized
advice to all clients.
This year CIBC Imperial Service, which offers
clients comprehensive branch-based advice for their
banking, credit and investment needs, was expanded
in five new markets.
CIBC Wood Gundy Investment Advisors
provide customized investment strategies through
one-on-one relationships with clients. The business
was recognized for the highest client satisfaction
rating among the big six bank-owned, full service
investment advice providers by the research firm
Corporate Insights.
CIBC Private Wealth Management offers
clients customized investment management, private
banking and estate planning solutions in Canada,
the Caribbean and Asia.
Personal bankers use the CIBC Financial
HealthCheck planning tool to help personal banking
clients identify their financial objectives and
understand their current financial situation. Using
this approach, we recommend practical solutions
to help clients achieve their goals.
Through continued focus on meeting our
clients’ financial needs and exceeding their
expectations,
we will build strong, enduring
relationships and deliver long-term sustainable
growth.
CIBC’s planned acquisition of an additional
43.7% share of FirstCaribbean International Bank
will enhance the strength of CIBC’s retail revenues.
FirstCaribbean is one of the largest regionally-listed
banks in the Caribbean with over 3,400 staff,
100 branches and banking centres, and offices in
17 countries.
CIBC Retail Markets
CIBC Annual Accountability Report 200610
CIBC World Markets
CIBC World Markets is the wholesale and corporate banking arm of CIBC, providing a range of integrated credit and capital
markets products, investment banking, and merchant banking to clients in key financial markets in North America and around
the world. We provide innovative capital solutions and advisory expertise across a wide range of industries as well as top-ranked
research for our corporate, government and institutional clients.
Strategy
CIBC World Markets’ objective is to maintain and
build its strength as a leading broad-based
investment bank in Canada, with a specialized
focus on mid-market expertise in the U.S., and
activities in Europe and Asia-Pacific.
Our strategy is to focus on growth opportunities
in our core businesses, while emphasizing
profitability, productivity and efficiency.
We are committed to building value through
leading industry expertise, product innovation
and a consistent client focus.
Priorities
- Invest in core
Canadian
businesses to build
franchise value
- Position for improved
profitability in the
U.S. region
- Target emerging
client groups and
structured
transactions for
growth
Measures
- Net income
- Revenue
- Efficiency ratio
- Market share
04 05 06
2.6 2.5 2.3
04 05 06
75.2 144.0 70.8
04 05 06
27.1 (89.1) 33.3660 (1,671) 646
04 05 06
0000
Total economic capital
($ billions)
Efficiency ratio (TEB)
(1)
(%)
Return on equity (ROE)
(1)
(%)
Net income (loss) after tax
($ millions)
11CIBC Annual Accountability Report 2006 11
Our goal is to focus on growth opportunities
in our core businesses, while emphasizing profitability,
productivity and efficiency in all of our activities.
We are committed to building value through leading
industry expertise, product innovation and a consistent
client focus.
Market leadership
CIBC World Markets is a leading broad-based
investment bank in Canada, with a specialized focus
on mid-market expertise in the U.S., and activities in
Europe and Asia-Pacific.
In 2006, our Canadian equity underwriting
and M&A businesses demonstrated strength and
market leadership, having advised on the greatest
value and number of deals, with significant deal
flow in both Canada and the U.S.
As a leader in advising and financing mining
companies around the globe, CIBC World Markets
continues to support Canada’s mining industry. This
year, we demonstrated that commitment by acting
as advisor to Falconbridge Ltd. on the world’s
largest mining transaction at a value of $27 billion,
and to Placer Dome Inc., to create the world’s
leading gold mining company.
CIBC World Markets continues to demonstrate
market leadership in retail structured products and
income trusts, as well as maintaining strength in
equity underwriting in Canada. This year, we advised
on two of the largest income trusts completed in
Canada including advising BCE on the creation of Bell
Aliant Regional Communications Income Trust, the
largest Telecommunications income trust in Canada;
and Petrofund Energy Trust on its merger with Penn
West Energy Trust to create the largest conventional
oil and gas royalty trust in North America.
Building on a strong 2005, CIBC World
Markets’ U.S. real estate finance business continued
its success by increasing its market penetration,
client base and product offerings. The group co-led
four commercial mortgage-backed securities (CMBS)
offerings totalling US$9.7 billion.
Our commercial banking business retained
100% of its top 50 clients from 2005, and attracted
new high quality, mid-market clients by partnering with
them to achieve their business and financial objectives.
At the forefront of new markets
We are committed to delivering industry leading
products and services to meet the evolving needs of
our clients and changing market conditions. We
continue to grow in non-traditional service areas
including our electronic trading capabilities and
prime brokerage activities. In addition, we also
broadened our client base by further expanding our
equity- and commodity-linked product offerings.
During the year, we enhanced our growing
leadership in the area of retail structured products
through ongoing partnerships with CIBC Retail
Markets and the wide distribution capabilities of the
entire CIBC network.
In response to changing market opportunities,
we increased our international debt origination
efforts, refined our structured credit focus and
aligned our distribution activities globally. In 2006,
we launched our first structured investment funding
vehicle in the Canadian market and partnered with
CIBC’s commercial mortgage division to launch
ClareGold, the bank’s first CMBS offering.
With a clear focus on delivering value to our
clients, CIBC World Markets remains committed to
a solid governance discipline and a strong focus on
efficiency to optimize performance and capitalize
on business connectivity.
CIBC World Markets
(1) For additional information, see the “Non-GAAP Measures” section on page 37.
Operating Highlights:
CIBC Annual Accountability Report 200612
CIBC Functional Groups
Administration, Technology and Operations (AT&O)
The AT&O group is comprised of more than 10,000 employees in the areas of technology
infrastructure and solutions, operations, human resources, and communications and public
affairs. These people manage and enhance the technology and operational processes that run
CIBC’s businesses worldwide, as well as providing specialized service and advice to our business
partners. In addition, our subsidiary company, INTRIA Items Inc., provides items processing,
currency and print services to CIBC and to other Canadian companies. The AT&O team made a
meaningful contribution
to CIBC’s productivity improvements in 2006, while sustaining a robust
and controlled operating environment. We also supported the continued reinforcement of CIBC’s
business strategy, and vision, mission and values with employees around the world.
Corporate Development
Corporate Development is a key participant in creating long-term value and directing CIBC’s
strategic planning processes. The group works to maximize the value of CIBC’s portfolio of
businesses through the identification, assessment and execution of strategic transactions. During
2006, in addition to managing the existing relationship with FirstCaribbean International Bank,
Corporate Development was integral to the proposed acquisition of Barclays Bank PLC’s
stake in
FirstCaribbean, giving CIBC majority control of the largest regionally-listed bank in the
English-speaking Caribbean. In addition, the group assisted in the disposition of CIBC’s interest in
Oppenheimer Holdings Inc. Corporate Development continued to partner with CIBC’s lines of
business to identify opportunities for growth and to increase the value of existing businesses.
Corporate Development also manages CIBC’s strategic relationship with CIBC Mellon.
Finance
The Finance group provides financial services to CIBC’s businesses through effective governance
and decision support processes. These services include financial, management and regulatory
reporting, maintenance of accounting records and internal controls, financial analysis and
planning, tax planning and compliance, global sourcing and payment processing, regular reviews
of business line performance, corporate real estate and liaison with CIBC’s investors. In addition,
Finance provides financial advice regarding CIBC’s business opportunities and transactions. During
the year, Finance continued to make progress on CIBC’s business priorities by leading bank-wide
cost management initiatives, enhancing corporate and financial disclosure to investors, and
integrating and strengthening control processes.
Legal and Regulatory Compliance
The Legal and Regulatory Compliance group handles the legal, compliance, corporate secretary,
internal audit, corporate security, ombudsman, and privacy functions within CIBC. Collectively, this
group provides leadership on governance and regulatory requirements and engages in a wide
range of support services. During the year, the group led a number of initiatives designed to further
reduce operating risks, comply with expanded regulatory oversight, improve efficiency of client
dispute resolution, and further improve the quality of support provided to other areas within CIBC.
Treasury and Risk Management (TRM)
TRM’s management of risk is a fundamental element of CIBC’s objective of consistent and
sustainable performance over the long term. In 2006, TRM actively managed exposures in CIBC’s
corporate loan and merchant banking investment portfolios. In addition, TRM enhanced the
bank’s infrastructure for managing retail credit risk, and corporate and commercial small business
credit risk. TRM managed bank funding and also worked successfully to strengthen CIBC’s capital
position, while maintaining capital ratios and preserving market risk exposures at low levels. TRM
continued to measure, monitor and control interest rate and liquidity resources, and operational,
reputation and legal risks. TRM, together with AT&O, also led CIBC’s Basel II Capital Accord
Program efforts.
- Deliver better service at lower cost
- Maintain robust and secure operating
platforms for all of our clients
- Foster a corporate culture that enhances
CIBC’s reputation and supports our vision,
mission and values
- Invest in people and leadership
- Continue to team with CIBC’s strategic
business lines to further enhance the
value of CIBC’s business
- Drive strategic planning and major
transaction execution
-
Enhance CIBC’s earnings from its investments
in FirstCaribbean and CIBC Mellon
-
Develop options and opportunities for future
acquisitions, divestitures and joint ventures
- Continue to improve and strengthen
control systems and processes
- Develop and lead initiatives across CIBC
to achieve long-term cost efficiencies
- Continue to enhance the level and quality
of disclosure to investors
- Maintain focus on mitigating
future risks for CIBC
-
Work across CIBC to help further safeguard
our clients’ information and provide an
effective process for client dispute resolution
- Manage and re-allocate risk resources
to higher return and/or strategic growth
activities to support CIBC’s objectives
-
Maintain CIBC Tier 1 capital ratio objective
of not less than 8.5% and total capital ratio
objective of not less than 11.5%
-
Ongoing measurement, monitoring and control
of credit, market, liquidity and operational
(including reputation and legal) risks
Functional Groups Our Priorities
13CIBC Annual Accountability Report 2006
This statement has been published by CIBC and the following affiliates of CIBC in Canada: CIBC World Markets
Inc; CIBC Mortgages Inc.; CIBC Life Insurance Company Limited; CIBC Trust Corporation; CIBC Securities Inc.;
CIBC Investor Services Inc.; CIBC Global Asset Management Inc.; CIBC Global Asset Management (USA) Inc.;
CIBC Private Investment Counsel Inc.; CIBC Asset Management Inc.; CIBC BA Limited.
Our Clients
- Almost 11 million clients, including more
than 500,000 small business clients
- 1,055 branches
- 3,818 automated banking machines (ABMs),
including 1,125 Access for All ABMs
Our Employees
- Invested approximately $56 million
in training globally
- Developed five-year plan to further
strengthen sustainable leadership capability
-
Won award in Best Internal Program category
for online orientation program
Our Communities
- Contributed more than $28 million in Canada
- The 2006 Canadian Breast Cancer Foundation CIBC Run
for the Cure raised $23.4 million to fight breast cancer
- CIBC World Markets Children’s Foundation raised
$3.7 million for children’s charities in Canada
Our Environment
- Consolidated and updated environmental
credit risk policies
- Renewed our commitment to the Equator Principles
- Collaborated with key stakeholders to include biodiversity
and climate change considerations in our decision-making
- Renewed commitment to green power, offsetting
carbon dioxide emissions at 18 CIBC branches
Public Accountability
Statement
Public Accountability
Statement
CIBC Annual Accountability Report 200614
Our Clients
Commitment
CIBC is committed to providing
affordable, accessible banking,
while protecting our clients and
shareholders through strong
governance and oversight
practices. Being the leader in
client relationships includes
providing products and services
that address the needs of our
diverse clients.
Priorities
-
Provide a consistent client
experience
- Protect our clients’ privacy
- Resolve client issues quickly
Measures
-
Client satisfaction
- Improved privacy procedures
- Resolution of client concerns
escalated to the Customer
Care Centre
15CIBC Annual Accountability Report 2006
Providing affordable, accessible banking
CIBC offers a wide range of products and services
tailored to our clients’ needs and preferences.
For people looking for affordable banking
solutions, we offer products like the CIBC Everyday
Chequing Account with a low monthly fee, a choice
of several no annual fee Visa cards, including a new no
annual fee CIBC Platinum Visa card, and competitive
mortgage rates with the variable-rate CIBC Better
Than Prime Mortgage and the fixed-rate CIBC
Better Than Posted Mortgage.
President’s Choice Financial (PCF), CIBC’s
co-venture with Loblaw Companies Limited, is a cost-
effective banking alternative, accessible through
in-store pavilions, ABMs, online and by phone. This
year, PCF introduced a new high-interest savings
account with anniversary bonus interest and no
daily banking fees.
For youth and seniors, CIBC offers free
banking through CIBC SmartStart Program for Kids
and CIBC Advantage for Seniors. Students of any
age have access to products like the CIBC Education
Line of Credit and the CIBC Advantage for Students
account, which offers a discounted fee. This year we
also increased loan limits on the Professional Edge
Student Personal Line of Credit and extended the offer
to a broader group of professionals returning to school.
Through our Aboriginal banking team, CIBC
provides access to financial services for Aboriginal
clients. CIBC’s seven on-reserve branches and an on-
reserve agency branch also serve clients in remote
locations. This year we continued to support the
development of financial literacy, introducing a
Personal Financial Planning program in several
Aboriginal communities. CIBC invested more than
$900,000 in national and local programs that support
the Aboriginal community, including The National
Aboriginal Achievement Foundation.
CIBC also makes every effort to staff branches
in a way that reflects the language preferences of the
communities we serve, including addressing the needs
of the large Chinese community in Canada through
our Asian banking team. In its Diversity in Canada
2006 report, Solutions Research Group Consultants
Inc. ranked CIBC 2nd among all Canadian banks
in serving the Chinese, South Asian and Italian
communities in Canada.
Working with partners in the mortgage
insurance industry, CIBC continues to enhance
programs to help newcomers to Canada. For those
newcomers who may not have established a
Canadian credit history and banking relationship, CIBC
helps to meet their banking and borrowing needs.
CIBC is committed to making banking easier
and more readily accessible for visually and hearing
impaired clients, the elderly and persons with
restricted mobility. We have surveyed 589 of our
1,055 branches, 370 of those in 2006, to
Our PCF Personal Banking
Representatives conducted 118
free seminars this year introducing
more than 2,000 new homebuyers
to the home buying process and
helping them identify ways to save
time and money.
Chequing and savings account
clients can choose to receive
quarterly statements or select our
paperless recordkeeping option.
CIBC’s Access for All ABMs are
installed at wheelchair accessible
height and include headphone jacks
for audio access; grab bars for
persons with mobility impairments;
and improved lighting to assist
elderly and partially-sighted clients.
Public Accountability Statement
04
0
05 06
610 945
Access for All ABMs in
Branches – 3 year trend
1,125 278.4 316.4
Client choice in recordkeeping
Clients signed up as of September 30, 2006 (thousands)
Paperless
recordkeeping
Quarterly
statements
0
CIBC Annual Accountability Report 200616
CIBC’s Aboriginal banking team provides
specialized expertise to Aboriginal clients
to help them meet their business and personal
financial needs.
This year we extended our 24/7 automated
telephone banking capability to serve
Cantonese- and Mandarin-speaking clients
across Canada. CIBC’s Telephone Banking
service also offers advanced speech
recognition and teletype (TTY) technology
for hearing impaired clients.
understand potential physical barriers that might
impact our clients’ experience, including parking,
building and vestibule access, main branch
circulation and counter access. Most CIBC branches
in our national network are now equipped with at
least one CIBC Access for All ABM.
CIBC has one of the largest multi-channel
distribution networks of the Canadian banks. We
provide 24/7 access to banking services
through our
ABMs, online banking and telephone
banking
channels. This year we introduced additional online
and ABM features to make it easier for clients to
manage their finances remotely. For clients who
prefer to have someone come to their home to discuss
mortgages, we offer mortgage services through our
mobile HLC Home Loans Canada sales force.
CIBC clients can access 49 mutual funds that
meet sustainable performance criteria set out by the
Social Investment Organization. CIBC offers the CIBC
Enviro-Saver Rebate to eligible mortgage clients who
have purchased an energy-efficient home or who
make energy saving improvements to an existing
home, resulting in a savings of 10% on their CMHC
Mortgage insurance premium.
Committed to small and
medium-sized businesses
Small businesses are vital to Canada’s long-term
economic prosperity and CIBC is committed to
supporting the success of small business owners. In
2006, we conducted a study to help understand
where and how our small business clients bank
and how we can better serve their personal and
business needs.
To make banking more accessible and
convenient, small business owners can now open
business accounts in all CIBC branches. We also
17CIBC Annual Accountability Report 2006
broadened remote services to include the ability to
apply for credit by phone or online.
This year, we added a customization feature
on our small business Convenience Card that allows
owners to delegate select banking duties to
employees. We also offer a choice of no annual fee
and annual fee-based Small Business Visa cards with
added value features and rates as low as CIBC prime
plus 1.5% per year.
CIBC invests in youth through programs like
the CIBC Student Entrepreneur of the Year Award,
Canada’s Outstanding Young Farmers Program,
Junior Achievement and the Canadian 4-H Council.
We continued to strengthen sales and service
delivery to agricultural clients in 2006 through our
experienced team of Agricultural Banking Specialists
who understand the unique financial needs of
agricultural business owners.
CIBC’s support of growing Canadian
businesses continues. This year, CIBC Commercial
Banking launched CEO Connect, a client-only
internet site hosting articles, research, webcasts,
CEO videos and best practices for executives at mid-
sized Canadian organizations.
Respecting our clients
We are committed to treating our clients with respect
and integrity, providing products and services in a
responsible, professional manner and safeguarding
our clients’ personal information and privacy.
“Our Service Commitment to You”, available
in branches and online, outlines our commitment to
ensuring we provide clients with service that exceeds
their expectations, provides fee transparency, and
ensures privacy protection and confidentiality. We
make every effort to resolve clients’ concerns quickly.
We introduced enhanced standards and information
for branch employees this year to better enable them
to resolve concerns at the first point of contact. If a
satisfactory resolution is not reached, the client is
referred to a trained specialist in our Customer Care
Centre or to the CIBC Ombudsman’s office.
Privacy continues to be a priority at CIBC.
Maintaining the confidentiality of client information
is a fundamental tenet of our relationship with
Public Accountability Statement
clients. In fiscal 2006, we updated and enhanced
CIBC’s “Your Privacy is Protected” brochure. The
updated brochure outlines our commitment to
client privacy and the steps our clients can take
to safeguard the privacy and security of their
personal information.
The CIBC Code of Conduct provides
employees with guidelines consistent with our
values of Trust, Teamwork and Accountability, clearly
outlining their responsibilities towards clients.
CIBC will continue to invest in enhanced
programs, procedures and training to ensure we
fulfill our commitment to our clients.
For information on branch openings and
closings, ABM installations and removals and listed
affiliates’ debt financing to firms in Canada, please
refer to pages 144 to 148.
The CIBC Spirit of Leadership Community Award
recognizes CIBC Commercial Banking clients who
demonstrate excellence in community spirit and
corporate giving. The Makivik Corporation was
an award recipient in December 2005 for their
Arctic Clean-Up Mission.
Our Employees
“
Through CIBC’s generous contributions, the Lesbian & Gay Community Appeal was able to support the Lesbian,
Gay, Bisexual and Transgender community in the areas of education, health, social services and arts and
culture. CIBC employees were instrumental in supporting our efforts to ensure the delivery of these programs.
”
David Brownstone, Co-Chair, Lesbian & Gay Community Appeal
Commitment
CIBC strives to create
a work environment
where our employees
can excel and fulfill
CIBC’s vision of being
the leader in client
relationships. We are
focused on supporting
CIBC’s business priorities
and the diverse needs
of our employees.
Priorities
-
Creating a supportive work environment
for our employees that reflects CIBC’s vision,
mission and values
- Maintaining a positive culture that allows
our employees to perform at their best
- Attracting and building CIBC’s talent and
leadership pool and creating opportunities
for employees to enhance their skills
- Ensuring all CIBC employees have a safe and
healthy work environment where they are
able to balance their work and life effectively
and contribute to their communities
Measures
-
Employee Commitment
Index (ECI) score
- Representation rates of
women, visible minorities,
Aboriginal peoples, and
persons with disabilities
in the CIBC workforce
- Percentage of employees
with a scorecard in place
- Expenditure per employee
on training
- New claim rates for short-
and long-term disability
CIBC Annual Accountability Report 200618
Members of CIBC’s Black Employee
Network participated in the Camp
Jumoke Walk-a-thon in support of
children with sickle cell anemia
19CIBC Annual Accountability Report 2006
Supportive employee environment
Creating a supportive work environment for our
employees builds employee commitment and
supports CIBC’s overall performance and success.
CIBC regularly measures our employee commitment
through a biennial employee survey. The most recent
survey was completed in 2005 and showed an
increase in the employee commitment score from 68
to 72. Survey results also indicated a high level of
awareness of CIBC’s vision, mission and values. Our
annual survey of executive values also highlighted
the group’s commitment to CIBC’s values of trust,
teamwork and accountability.
In 2006 we laid the foundation for a five-
year plan to proactively develop and sustain CIBC’s
leadership capability. A new employee development
course for the next level of leadership focused on
CIBC’s vision, mission and values was also launched.
CIBC is committed to building a positive and
supportive environment for employees. CIBC’s Code
of Conduct is one of the ways we promote CIBC’s
values. It guarantees every employee the right to be
respected, to receive fair and equitable treatment,
to be free from harassment or discrimination, and to
be protected from retaliation if they report a
contravention of the Code. All employees are
required to complete annual certification and testing
on the Code.
An award-winning orientation program for
all new employees was launched to ensure that
employees receive a consistent orientation to CIBC
and how we operate. We also introduced a new
orientation module for executives. In addition, a
new series of training programs for employees
and managers was launched that sets expectations,
supports an organizational culture of respect and
trust and ensures CIBC workplaces are healthy, safe
and secure.
In 2006, we invested approximately $56 million
globally, or $1,500 per employee, on training including
governance and regulatory compliance, client service,
product knowledge and a broad range of business and
technical skills.
At CIBC, employment equity is a clear priority.
In 2005, CIBC achieved its representation goals for
three of the four designated groups: women,
visible
minorities and persons with disabilities.
Representation goals are based on national labour
market availability rates provided by Statistics
Canada for each of the designated groups. We
continue our efforts to maintain our representation
levels, while focusing on recruitment and retention
of Aboriginal peoples to close our remaining gap.
In 2006, CIBC convened its first National
Employment Equity and Diversity Congress. The
Congress focused on the development of CIBC’s
Members of the CIBC Hispanic
Employee Network celebrate
Hispanic Heritage Month.
CIBC achieved its representation
goals for women, visible minorities
and persons with disabilities.
Senior management
representation
rates and goals
(as at Dec. 31, 2005)
Workforce
representation
rates and goals
(as at Dec. 31, 2005)
% Rate Goal
Women 28.5 25.1
Visible
minorities 9.6 8.2
Persons with
disabilities 6.4 1.9
Aboriginal
Peoples 0.4 2.6
% Rate Goal
Women 68.8 62.3
Visible
minorities 22.4 12.9
Persons with
disabilities 4.2 3.7
Aboriginal
Peoples 1.6 1.9
Public Accountability Statement
CIBC Annual Accountability Report 200620
150 events including panel discussions, employee
workshops, open houses and cultural festivals.
At the Board of Directors level, women
continued to hold five of the 18 director positions.
As part of our ongoing Board renewal program, we
regularly assess the skills and characteristics of CIBC
Board members against current and anticipated
needs, enabling the Board to maintain the
appropriate skill set to oversee CIBC’s businesses.
A focus on performance
CIBC’s Performance Management and Measurement
(PMM) system uses a balanced scorecard approach
including financial results, client relationships,
operational efficiency, strategic priorities and key
competencies to assess employee performance. The
PMM process allows employees to understand and take
ownership of their contribution to the achievement
of business goals and is directly tied to year-end
compensation through variable incentive awards.
A priority for the Senior Executive Team (SET)
in 2006 was ensuring a consistent set of goals was
used by the entire SET. The common goals were to:
•
Support CIBC’s vision, mission and values
and adhere to CIBC’s stated governance
and regulatory environment
•
Meet 2006 strategic plan
•
Deliver on talent management
and succession plans
•
Achieve productivity goals
These goals were also used to develop scorecards
for the balance of the executive group. The PMM
process continues to be an important performance
management tool and 80% of full- and part-
time
employees had written scorecards in place
in 2006.
Managing perfor