TD Bank Group announced on 17 January 2025 that it was accelerating its planned chief executive transition, with Raymond Chun taking up the role of Group President and Chief Executive Officer effective 1 February 2025. Bharat Masrani, who has led the Toronto-based bank since 2014, will retire as CEO and from the Board at the same time, remaining available in an advisory capacity until 31 July 2025. The change comes more than two months ahead of the April date the bank had previously communicated to the market.
TD said Masrani would provide continuity on the bank's critical anti-money laundering remediation effort during the transition. TD agreed to significant remediation commitments and financial penalties with US regulators in 2024 after acknowledging failures in its AML compliance programme in the United States.
CHUN'S BACKGROUND
Raymond Chun joined TD Bank Group in 1992 and has held senior roles across the organisation, most recently serving as Chief Operating Officer since 1 November 2024.
The AML remediation programme requires TD to meet specific milestones agreed with US authorities, including the Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency.
BOARD CHANGES ACCOMPANY LEADERSHIP SHIFT
The announcement also included Board renewal: five directors will retire at the April 2025 annual meeting, four new nominees with banking and compliance expertise will stand for election, Board Chair Alan MacGibbon will step down as Chair and retire as a director by 31 December 2025, and new chairs were named for key committees, including a new remediation committee. TD also cut 2024 variable pay for 41 executives, while Masrani received no 2024 cash incentive or equity award, cutting his 2024 total direct compensation by 89% to C$1.5 million.
Board Chair Alan MacGibbon said Chun had "moved quickly and decisively to launch a review of our strategy, operations, and investments".