TD Bank 2007 Annual Report Download - page 14

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 To Our Shareholders10
Disclosure Policy in 2007. This year
the Canadian Coalition for Good
Governance also identied TD as
having best practices in director and
executive share ownership guidelines,
director performance assessment, and
relating company performance to
executive compensation. These results
continue to reinforce the commitment
your directors and senior executives
have made to be at the forefront of
corporate governance.
I’m also proud of TD’s progress in
making corporate social responsibility
an integral part of how we operate.
We strive to be a caring and engaged
corporate citizen. For us, corporate
social responsibility is about doing
business in a way that is ethical, fair
and transparent. This includes being
respectful of the environment, helping
enrich our communities and society
and promoting the well-being of our
employees.
On behalf of the Board I would like
to express our sincere gratitude to all
of TD’s 58,000 employees for making
2007 another exceptional year for the
Bank. The continuing success of TD is
a tribute to the talent and achievements
of this world-class team. I’d also like to
thank our shareholders for their
continued support of TD as we
continue to build for the future of this
great organization.
John M. Thompson
Chairman of the Board of Directors
All TD businesses delivered double-
digit earnings growth in 2007. This
shows our strategy of being a lower
risk, highly integrated, and customer
focused bank is working. Our 2007
results also speak to TD’s ability to
balance investment in future growth
with the delivery of consistent
shareholder returns.
TD’s excellent nancial performance
led the Board to make two dividend
increases. Total dividends per share
increased to $2.11, up 19% over 2006.
This increase reected our condence
in the Bank’s ability to consistently
grow earnings over time. The Bank’s
total shareholder return was 13%.
The market turmoil in the second half
of the year has had a dening impact on
the banking industry. It tested the
strategic foundations of many nancial
institutions and put a spotlight on risk
management. TD did not report any
write-downs due to the credit crunch,
which was a testament to strategic
decisions that TD’s management made
several years ago.
2007 was an excellent year for TD and its shareholders,
one that saw very strong nancial results and signicant
progress in solidifying a North American presence to
drive long-term shareholder value.
This year marked some important
milestones in TD’s progress towards
becoming a major player in North
America. The Board has worked closely
with TD’s management to provide
strategic advice and support throughout
the TD Banknorth privatization as well
as the agreement to buy Commerce
Bancorp. These acquisition activities,
combined with the Bank’s existing
investment in TD Ameritrade, signi-
cantly grew TD’s U.S. presence.
Your Board has great condence in the
U.S. expansion that Ed Clark and his
senior management team are undertak-
ing. We believe TD shareholders will
look back on 2007 as a transformational
year in the Bank’s history. A year that
enhanced TD’s prospects as a growth
company and positioned the organiza-
tion to deliver consistent shareholder
returns in the years ahead. TD’s
management is fortunate to have a
skilled team of directors for strategic
counsel, and their collective experience
has brought many valuable perspectives
to the deliberations and decisions made
on the Bank’s U.S. growth plans.
The Board continues to represent the
best interests of shareholders through
a strong focus on good corporate
governance. As a leader in this area,
TD is committed to making ongoing
enhancements to our robust
governance foundation. In 2007, we
placed particular emphasis on improv-
ing Board and committee processes
in order to spend more time on strategy
and to maximize the effectiveness
in the way we function as a Board and
to spend more time on strategy.
I’m pleased to report that TD was
recognized externally for having many
best-in-class governance practices. This
acknowledgment included the Bank
being recognized by Investor Relations
(IR) Magazine for having the Best
TO OUR SHAREHOLDERS
Chairman of the Board’s
Message