(Reuters) – TD Bank Group said on Friday that Raymond Chun, who will be named its next chief executive officer, will be appointed to the role on February 1, several months earlier than originally planned, including the outgoing chief. The company announced that it would cut the salaries of 41 executives.
The Canadian bank last month suspended its medium-term earnings forecast, warning of a difficult 2025 as it works on its anti-money laundering remediation program following an investigation by U.S. regulators.
TD also said it will undertake a strategic review that will include a reassessment of growth opportunities, productivity initiatives and where investments and divestitures are needed.
In October, it became the largest bank in U.S. history to plead guilty to violating federal anti-money laundering laws, agreeing to pay more than $3 billion in fines to resolve the charges.
The plea deal, which includes the imposition of rare asset caps and other business restrictions, stems from multiple government investigations into what authorities say are broader issues.
Chun will succeed long-time CEO Bharat Masrani, who became the bank's chief executive in 2014.
The bank cut Masrani's total compensation by 89% from $13.27 million in 2023 to $1.5 million in 2024.
Mr. Chun attended his first banking conference in Toronto in January as the incoming CEO and announced plans for the bank that could include selling its Charles Schwab stock and withdrawing from some loan portfolios. He mentioned strategic review. Chun also said the company plans to hold an investor meeting in the second half of 2025.
Alan McGibbon, Chairman of TD's Board of Directors, said: “Ray has acted quickly and decisively to initiate a review of our strategy, operations and investments, and has engaged with customers, business partners and colleagues across the bank.” .
Masrani will remain in an advisory role until July 31, the bank said. TD previously announced Chung's transfer date as April 10th.
(Reporting by Manya Saini in Bengaluru and Nivedita Bal in Toronto; Editing by Shilpi Majumdar)
