Toronto-Dominion Bank (TSX:TD) shares moved higher during Monday’s trading session with sentiment towards the bank buoyed by the announcement last week it is speeding up its CEO succession and slashing executives’ bonuses.
Investors reacted positively to the moves, which come as TD is facing costly anti-money laundering (AML) failures in the US that resulted in significant penalties and restrictions.
Raymond Chun, the bank’s incoming CEO, will take over on February 1, 2025, more than two months earlier than planned, TD confirmed on Friday.
"Ray has moved quickly and decisively to launch a review of our strategy, operations, and investments, and has engaged with customers, clients and colleagues across the bank,” TD board chair Alan MacGibbon said in a statement.
The company said outgoing CEO Bharat Masrani received no cash incentive award or equity compensation for 2024, resulting in his total direct compensation being reduced by 89% year-over-year from $13.3 million in 2023 to $1.5 million in 2024.
It reduced bonuses for 41 executives, many of whom are no longer with the bank, by a total of $30 million.
Further, TD also announced board and committee renewals, including the retirement of five long-serving directors and the appointment of new leadership for four out of five board committees.
Shares of TD traded up 4% at approximately C$57.50 on Monday afternoon in Toronto, having gained almost 6% over the last five trading sessions.