Key Takeaways
- TD Bank Group shares rose Thursday amid news that CEO Bharat Masrani is planning to retire next spring after a decade in the top role at the Canadian firm.
- Raymond Chun, who currently leads the bank’s Canadian personal banking operations, will become COO later this year and take over for Masrani when he retires in April 2025.
- Masrani celebrated the decision to elevate Chun, and said the investigation into suspected failures of TD’s anti-money laundering practices was his own responsibility.
Shares of TD Bank Group (TD) rose Thursday after announcing a succession plan for Chief Executive Officer (CEO) Bharat Masrani, who plans to retire in April 2025.
Raymond Chun, head of the company’s Canadian personal banking operations, will be elevated to the role of Chief Operating Officer (COO) on Nov. 1, reporting to Masrani, and take over the top role once Masrani retires next spring. The bank said Masrani will work as an advisor to the bank through October 2025 before officially retiring after nearly 40 years with the company.
“I am honoured by the trust our Board has placed in me,” Chun said. “TD is a critical part of our financial system and economy, and directly supports the financial goals of millions of households and businesses, and the aspirations of communities across Canada, the U.S. and globally.”
Outgoing CEO Takes ‘Full Responsibility’ for Anti-Money Laundering Investigations
Masrani said the current investigations into the anti-money laundering practices of TD and other banks—which are alleged to have failed to prevent the crime in the U.S.—”took place on my watch as CEO and I take full responsibility.” The bank has said it expects to be penalized for its violations, and has set aside billions to deal with fines and other costs.
TD Bank shares were up 2.6% to $64.20 Thursday afternoon. They are little changed on the year.