TD Bank speeds up CEO replacement, slashes 41 executive salaries

globalnews.ca:

TD Bank Group said on Friday CEO-designate Raymond Chun would be appointed to the role on Feb. 1, months earlier than initially planned, and slashed the salary of 41 executives, including its outgoing chief.

Last month, the Canadian bank warned of a challenging 2025 and suspended its medium-term earnings forecast as it works through its anti-money laundering remediation program following a U.S. regulatory probe.

TD had also said it would hold a strategic review that would include reassessment of growth opportunities, productivity initiatives and where it needs to invest or divest.

In October, it became the largest bank in U.S. history to plead guilty to violating a federal law aimed at preventing money laundering, and agreed to pay more than US$3 billion in penalties to resolve the charges.

The plea deal, which includes a rare imposition of an asset cap and other business limitations, arises from multiple government investigations into what authorities described as pervasive issues.

Chun is set to replace long-time CEO Bharat Masrani, who took the top job at the bank in 2014.

The bank lowered Masrani’s total compensation by 89 per cent to US$1.5 million in 2024, from US$13.27 million in 2023.

At his first appearance as incoming CEO at a banking conference in Toronto in January, Chun addressed the bank’s strategic review that could include the sale of its stake in Charles Schwab and exiting some loan portfolios. Chun also said he expects to hold an investor day later in 2025.

“Ray has moved quickly and decisively to launch a review of our strategy, operations, and investments, and has engaged with customers, clients and colleagues across the Bank,” chair of TD’s board Alan MacGibbon said.

Masrani will stay on in an