TORONTO - Toronto-Dominion Bank Chief Executive Officer Ed Clark plans to retire in late 2014, and Bharat Masrani, group head of U.S. personal and commercial banking, will succeed him, the bank said on Wednesday.
In preparation for the move, Masrani will become chief operating officer on July 1, 2013, the bank said in a statement.
"While the timing of the announcement may be a little sooner than most had anticipated, the timeline for the transition provides ample time for the market to digest the change and the announced replacement, Bharat Masrani, should not be a surprise to many," Barclays analyst John Aiken said in a note to clients.
Clark will retire as CEO on Nov. 1, 2014 at age 67, the Toronto-based bank said. He will remain a board member until TD's 2015 annual meeting.
"Ed Clark is well respected in the market, and it is hard not to believe that his departure is not a net negative for TD," said Aiken. "That said, TD's bench strength remains quite strong, and Bharat Masrani has done an exemplary job in growing the U.S. retail operations."
Masrani began his banking career with TD as a commercial lending trainee in 1987. Since then, his positions have included CEO of TD Waterhouse Investor Services in Europe, country head of the bank's operations in India, and head of corporate banking in Canada.
TD has about 1,100 bank branches in Canada and about 1,300 in the United States, where it has a sizable presence on the Eastern Seaboard. It also owns 45 percent of U.S. discount broker TD Ameritrade Holding Corp.
The bank said Mike Pedersen, who is currently group head of wealth management, insurance and corporate shared services, would succeed Masrani as head of U.S. banking operations on July 1. Pedersen will continue to report in to Clark until Nov. 1, 2014.
Tim Hockey, who heads TD's Canadian banking, auto finance and credit card arm, will also be responsible for TD Wealth Management starting this July.