Toronto-Dominion Bank’s TD-T head of Canadian personal banking is leaving to lead a U.S.-based digital banking and payments provider, prompting a leadership shakeup at this country’s second-largest lender.
Michael Rhodes is departing to take on the role of chief executive officer at Illinois-based Discover Financial Services, one of the largest credit-card issuers in the country. TD is tapping head of wealth Raymond Chun as Mr. Rhodes’s successor and promoting capital markets executive Tim Wiggan to lead the wealth business.
“At TD, we have a depth of talent and a strong leadership bench, and I am pleased to announce the following changes,” TD CEO Bharat Masrani said in an internal memo Monday that was viewed by The Globe and Mail.
Earlier this year, Discover launched an internal review of its risk management and corporate governance after regulators found issues with its compliance practices, including in its credit cards and student-loan servicing businesses. Former CEO Roger Hochschild resigned in August and the board installed one of its own directors as interim CEO. Mr. Rhodes will step into his new role on March 6.
TD is also in the midst of its own regulatory issues. The bank expects monetary and non-monetary penalties from U.S. regulatory and legal enforcement agencies, including the U.S. Department of Justice, which are investigating the lender’s anti-money laundering practices.
Executives who oversee the personal and commercial banking units at the major banks are often considered to be potential successors for the top seat of chief executive officer. The CEOs of Canada’s largest lenders typically serve a decade-long term, and Mr. Masrani has entered his tenth year at the helm of TD.
As the head of TD’s personal and commercial business in Canada, Mr. Rhodes led the bank’s largest business, which generates more than a third of the lender’s revenue. He took on the role in January, 2022, after leading the innovation, technology and shared services division for four years. He has also led the consumer bank and wealth management business in the bank’s U.S. division, and the North American credit-card and merchant-services unit.
Mr. Chun, who has worked at TD for more than 30 years, steps into the role as head of Canadian personal banking effective immediately. Prior to his role as the head of wealth and insurance, he was the president of direct investing and wealth delivery, as well as president and CEO of TD insurance. He has also worked in other businesses including personal banking products, branch banking, TD Waterhouse’s private client services and direct channel sales.
“His proven leadership and knowledge of the retail market will help Ray drive the continued growth in Canadian Personal Banking,” Mr. Masrani said in the internal memo.
Mr. Wiggan, TD Securities vice-chair and co-head of global investment banking, is taking on the job of head of wealth and insurance, joining Mr. Masrani’s most senior leadership team. He also advised on TD’s acquisition of New York-based investment bank Cowen Inc.
In his more than 25 years at the bank, Mr. Wiggan has worked in roles spanning the capital markets business, including co-head of global markets and head of equities and commodities. He also spent four years as the CEO of TD Asset Management in the wealth division.
TD said that the executives were not available to comment. Mr. Rhodes did not respond to a request for comment.
Stefanie Marotta