TD slashed pay for its U.S. chief, Leo Salom, last year in the fallout of the bank’s costly anti-money laundering scandal.
Salom had his variable compensation cut by 35%, to $1.49 million, according to an annual filing posted Tuesday. His total direct compensation for 2024 was $3.5 million, down from $4.6 million the prior year. He’s held his post at TD since February 2022.
But because of the role Salom “will continue to play in the remediation of the bank’s U.S. AML program,” the bank’s compensation committee approved for him a one-time $2 million restricted share unit award to be granted this year.
“Vesting of the award is subject to meeting AML remediation conditions and milestones,” the committee wrote.
Salom’s pay cut last year was in line with TD’s decision to reduce 41 executive salaries in the wake of the AML scandal and its related penalties – $3 billion in fines and a $434 billion cap on the bank’s U.S. retail assets.
Compensation cuts reflect “the seriousness of the U.S. [anti-money laundering] failures, the associated costs to the Bank, and the limitations imposed on the U.S. retail business,” the bank said in January.
TD CEO Ray Chun, who took the role from Bharat Masrani in February, had his 2024 compensation set at $7.9 million (C$11.4 million).
Masrani received no cash incentive award or equity compensation in 2024, resulting in an 89% year-over-year reduction in pay, from $13.3 million to $1.5 million.
“There is no doubt that 2024 was a challenging year for TD,” Board Chair Alan MacGibbon wrote in the annual report. “The gravity of TD’s U.S. anti-money laundering failures, the associated costs, and the limitations imposed on the U.S. retail business had and will continue to have a significant impact on the bank.”
“Enhancing our AML program, strengthening its oversight to meet our regulatory obligations, and implementing a refreshed strategy are top priorities” for the bank, MacGibbon wrote, and “work is well underway.”
Among its AML remediation efforts were accountability reviews. Twenty-two people left the bank last year as a result of the reviews, TD said.
