TORONTO, Feb. 27 (UPI) -- Toronto-Dominion Bank's chief has refused to accept up to $10.1 million in severance pay as part of a contract extension, the Canadian bank said Friday.
Bank Chief Executive Officer Ed Clark, whose contract was set to expire Oct. 10, 2010, will now be employed through the company's 2013 annual meeting, Canada's No. 2 bank by market capitalization said.
Clark, who has a doctorate in economics from Harvard University, waived his right to severance pay "under any circumstances," said the bank, which operates TD Canada Trust and TD Waterhouse in Canada and TD Bank and TD Ameritrade in the United States.
Clark's pension will be frozen in 2010 and pension payments that would have been due to him in cash will be converted to a $4.7 million stock option grant.
In addition, the bank will take back any equity Clark might get through "fraudulent misrepresentations of financial results" and Clark will be required "to hold an equity stake equal to 10 times his base salary for at least two full years after retirement, linking his compensation to TD's performance even after he is no longer CEO," the bank said.