TD speeds up CEO succession, makes sweeping changes to board

financialpost.com:

Toronto-Dominion Bank is speeding up the appointment of its new chief executive and has made sweeping changes to its board, just a few months after regulators in the United States levied sanctions against the lender for failing to monitor money laundering activities at its branches.

Raymond Chun, currently chief operating officer at TD, will now succeed Bharat Masrani as CEO on Feb. 1 instead of April 10, as previously planned.

“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,” Alan MacGibbon, TD’s chair, said in a statement. “We are excited to have Ray take the helm and lead TD into the future.”

The bank also said MacGibbon will step down as chair and retire as a TD director by year-end.

In addition, the board amended its corporate governance guidelines to reduce the discretionary director term extension to two years from five years after an initial 10-year term. As a result, five TD board members will leave.

Amy Brinkley, Colleen Goggins and Karen Maidment will retire from the board at the annual general meeting on April 10, while Claude Mongeau and Brian Ferguson have elected not to seek an extension under the new policy and will also retire at the AGM.

TD said four “highly qualified leaders with experience in global banking, governance, risk management, and regulatory compliance” will stand for election.

They include Elio Luongo, former chief executive of KPMG Canada; Nathalie Palladitcheff, the first female CEO of Ivanhoé Cambridge Inc.; Frank Pearn, former global chief compliance officer and operational risk executive at JPMorgan Chase & Co.; and Paul Wirth, former deputy chief financial