Della Rollins/Bloomberg
UPDATE: This article includes analysis and additional information from TD’s announcement.
TD Bank Group’s president and CEO is stepping down next year after a decade at the helm, the final few years of which have been
Bharat Masrani, who joined the Toronto-based bank nearly 40 years ago, plans to retire on April 10, 2025, the bank announced Thursday. He will pass the torch to Raymond Chun, who currently serves as the head of Canadian personal banking at TD.
While the bank has seen massive digital transformation and stateside expansion during Masrani’s tenure, TD has recently faced public scrutiny as failures in its U.S. anti-money-laundering program have come to light. The bank expects to pay
“We have a strong bench of senior leaders and will execute a smooth and seamless CEO transition,” Masrani said Thursday in a prepared statement. “The anti-money laundering challenges we face took place on my watch as CEO and I take full responsibility. In the coming months, I will continue to advance and direct the critical remediation program required to meet our obligations and responsibilities and strengthen our risk and control foundation.”
In a prepared statement, Alan MacGibbon, chair of TD’s board, said Masrani “led the bank through a period of profound change in our industry.” MacGibbon said the board extends “its deep appreciation” for Masrani’s contributions to the bank.
“[Masrani] accelerated our transformation in the digital age, enhanced the competitiveness of our businesses, nurtured one of the world’s most valuable brands, and steered TD through complexity with a steady hand,” MacGibbon said.
Chun will take on the chief operating officer role and join the board of directors, effective Nov. 1, before transitioning to the CEO job next spring. Following his retirement, Masrani will continue as an advisor to TD until Oct. 31, 2025.
John Aiken, an analyst at Jefferies, wrote in a note following the announcement that Chun had been flagged as a contender for TD’s next CEO, and that his lack of direct ties with the U.S. retail banking operations, where the anti-money-laundering problems occurred, “probably moved him up the list.”
“While Bharat Masrani’s retirement is not a surprise given his tenure and the impact that the U.S. regulatory issues have had on TD, the timing is a bit of a surprise,” Aiken wrote. “We had assumed that the announcement would be made after the investigation was complete.”
When the Canadian bank still had big American dreams, Leo Salom, the president and CEO of its U.S. subsidiary based in Cherry Hill, New Jersey, seemed like a reasonable heir to Masrani. But the
In a prepared statement, Chun said that he’s “committed to the work and energized by the opportunity” to lead TD “into the future.” Before heading up the bank’s home country’s personal banking strategy, Chun served in roles leading direct investing, insurance and wealth management.
“Ray’s deep knowledge of banking and his drive for results are matched only by his commitment to TD and the millions we serve,” Masrani said. “We are navigating a difficult moment, and I am confident that Ray’s leadership will successfully guide this great institution into the future.”
The bank also announced that Riaz Ahmed, president and CEO of TD Securities and head of wholesale banking, will retire at the end of next January following nearly three decades at the bank. TD’s head of wealth management and insurance, Tim Wiggan, will move into Ahmed’s former post, effective Nov. 1.
The bank said that Sona Mehta, who leads real estate secured lending, everyday banking and saving and investing, will be Chun’s successor as the head of Canadian personal banking.
