Bharat Masrani’s Advisory Role Amid Bank’s Fines
“The payment, part of a $3.6 million total compensation package for Masrani, signals the bank kept him involved in remediation even as it faces almost $3.1 billion in fines from U.S. authorities.” This statement encapsulates the ongoing relationship between Bharat Masrani and the Toronto-Dominion Bank (TD Bank) following his tenure as CEO.
Masrani, who stepped down in February 2025, has been identified in a recent proxy filing as the former chief executive who received a $3 million advisory payment for his role in guiding the bank’s anti-money-laundering remediation efforts. His total compensation for the year reached $3.6 million, a significant increase from the previous year’s $1.6 million.
The advisory payment comes in the wake of TD Bank agreeing to pay nearly $3.1 billion in fines as part of a settlement with U.S. authorities. This settlement was a response to regulatory scrutiny regarding the bank’s compliance with anti-money-laundering laws, which has put pressure on the institution to enhance its governance and operational practices.
Raymond Chun, who succeeded Masrani as CEO, received a total compensation of $14.6 million for the year, which included a direct pay above target of $2.3 million. The proxy filing ties the compensation story to the leadership transition and the board’s stated priorities, indicating a strategic approach to managing executive compensation during a period of significant regulatory challenges.
Furthermore, the filing highlights that Masrani continues to receive certain health and other benefits, as well as office and administrative support, even after his departure from the CEO role. This ongoing provision of benefits underscores the bank’s commitment to retaining his expertise during a critical period of remediation.
Details remain unconfirmed regarding the specific advisory responsibilities Masrani will undertake going forward. Additionally, questions persist about how progress on remediation will be measured and the timeline for returning to standard variable compensation practices across the executive ranks.
The filing therefore presents the advisory fee as part of a transitional arrangement tied to remediation tasks, reflecting the bank’s efforts to navigate the complexities of regulatory compliance while ensuring continuity in leadership and expertise during this challenging phase.
