Toronto-Dominion Bank chief executive officer Ed Clark plans to exercise about one-fifth of his stock options and donate 40 per cent of the proceeds to charity.
The bank granted Mr. Clark the options in 2001 and 2004, and they expire at the end of 2011.
He plans to start cashing them in now at weekly intervals since there are a number of windows in which he may not be able to exercise them, such as the six weeks before each of TD's quarterly financial reports.
In total, he will exercise options for about 550,000 shares. Their value to him will be based on the bank's stock price when he cashes them in, discounting the amount that was paid for them. TD's shares closed at $64.81 each Tuesday, making 550,000 shares worth about $35.65-million in total.
As of Dec. 31, Mr. Clark held about 3.28 million stock options which were then worth $12-million at the bank's year-end closing price of $43.45 a share.
TD's shares, along with those of banks globally, took a beating in the financial crisis, decreasing the net worth of bank CEOs. The in-the-money value of stock options that Mr. Clark held fell by $57.9-million over the course of 2008.