TD Bank announces CEO shakeup, Masrani set to retire in 2025 – National
TD Bank CEO Bharat Masrani will retire next year and hand over the job to the head of its Canadian banking division, Ray Chun, as Canada’s second-largest lender braces for expected fines in the United States for weaknesses in its anti-money laundering protocols.
Masrani, who became CEO in 2014, is expected to step down in April, Toronto-based TD said. TD also said Riaz Ahmed, the head of its capital markets division TD Securities, would retire in January.
Masrani focused on the bank’s U.S. unit as it sought growth opportunities outside Canada, growing that business to become the 10th-largest bank in the United States, with about $400 billion in assets and a network of 1,150 branches on the East Coast.
Last year, the bank ran into trouble with the U.S. government, including the Justice Department, over weak anti-money laundering protocols after TD pulled the plug on its $13.4 billion acquisition of Tennessee-based First Horizon, which would have expanded its network in the U.S. Southwest.
The U.S. regulatory investigations center on allegations that Chinese drug traffickers used TD to launder at least $650 million between 2016 and 2021 and that an employee accepted a bribe to facilitate the laundering of drug money.
In August, TD reported its first loss in decades after setting aside $2.6 billion to cover expected fines from U.S. regulators.
Get the latest national news
For news that impacts Canada and the world, sign up to receive breaking news alerts directly when it happens.
“The anti-money laundering challenges we face have occurred under my leadership as CEO and I take full responsibility for them,” Masrani said in a statement Thursday.
“In the coming months, I will continue to advance and lead the critical remediation program necessary to meet our obligations and responsibilities and strengthen our risk and control base,” Masrani added.
Chun joined TD’s management training program in 1992 and has held several leadership roles over the past 32 years, including President of TD Direct Investing, CEO of TD Insurance, Director of Wealth Management and Insurance and Director of Canadian Personal Banking.
Shareholders and analysts polled by Reuters last month said a CEO change was expected next year.
“The timing is somewhat surprising,” Jefferies analyst John Aiken said Thursday. “We thought the announcement would come after the (U.S.) investigation was complete.”
Aiken added that Chun “had no direct connection to U.S. retail banking operations, which likely pushed him up the list.”
TD’s stock has gained nearly 54% during Masrani’s tenure, though it’s in negative territory this year. Its shares were up about 1.5% Thursday morning.
Masrani will continue in his advisory role until the end of October 2025, TD said.
TD also announced a series of leadership changes: Paul Clark will lead its wealth management unit, Sona Mehta will assume Chun’s role as head of Canadian personal banking and Tim Wiggan will replace Ahmed as head of TD Securities.
