(Reuters) – Canadian lender TD Bank CEO Raymond Chun’s 2024 compensation was set at C$11.4 million ($7.88 million), according to a regulatory filing on Tuesday.
Chun, who has spent more than 30 years with the bank, began his tenure as the CEO last month amid the lender’s ongoing anti-money laundering (AML) remediation program, following a significant fine paid to U.S. regulators.
TD Bank has also cut the 2024 direct compensation for its U.S. Retail head Leo Salom by 23% to $3.51 million in the wake of the anti-money laundering scandal.
The bank expedited Chun’s appointment as CEO by more than two months, while also reducing outgoing CEO Bharat Masrani’s annual salary by 89% to C$1.5 million.
Masrani, who will be with TD as an advisor until the end of July, will receive C$500,000 per month and benefits, the bank said.
Chun’s total direct compensation target for 2025 was raised to C$12 million as he assumed the CEO role on February 1, the filing showed.
Previously, his compensation was set at C$9.5 million while he served as the chief operating officer from November to February.
Five board members will step down in April, the bank has said. Chairman Alan MacGibbon, is set to retire at the end of the year.
The Canadian bank has suspended its medium-term earnings forecast due to the expected challenges in 2025, as it undertakes an AML remediation program following a U.S. regulatory investigation. The bank also announced plans to conduct a strategic review.
As a part of its remediation program, TD said it has appointed more than 40 new executives and 700 anti-money laundering professionals to strengthen its risk and compliance capabilities.
Meanwhile, CIBC said its CEO Victor Dodig’s total compensation target for fiscal 2025 has been increased to C$13 million from C$11 million.
($1 = 1.4474 Canadian dollars)
(Reporting by Arasu Kannagi Basil in Bengaluru and Nivedita Balu in Toronto; Editing by Mohammed Safi Shamsi)
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