
Toronto-Dominion Financial institution management modifications
In its announcement, TD confirmed that 41 executives, together with some who’ve left the group, had their bonus funds lowered final 12 months. These changes, totalling US$30 million, had been applied in response to the bank’s regulatory challenges and associated costs.
“TD has adjusted govt compensation to replicate the seriousness of the US AML failures, the related prices to the financial institution, and the constraints imposed on the US retail enterprise,” the financial institution mentioned, as reported by Bloomberg.
Masrani obtained no performance-based compensation for the 12 months, leaving him with a complete pay of US$1.5 million, down considerably from US$13.3 million within the prior 12 months. His pay lower accounted for greater than one-third of the general govt compensation reductions.
Monetary and regulatory impression
TD’s AML points culminated in late 2024 when the financial institution reached a settlement with US regulators, agreeing to pay roughly US$3.1 billion in penalties. The violations, which included failures to identify and address money-laundering activities, resulted in extra regulatory restrictions on TD’s US operations.
Past the settlement, TD cancelled its proposed US$13.4 billion acquisition of First Horizon Corp, citing regulatory considerations tied to its compliance challenges. The termination of the deal incurred a US$200 million breakup price.