March 12 (Reuters) - TD Bank Chief Executive

Officer Bharat Masrani received a compensation cut of about 11%

to C$13.4 million ($9.93 million) in 2023, a year marred by the

bank's termination of its First Horizon ( FHN ) acquisition and

U.S. regulatory issues.

"The board believes that the CEO demonstrated excellent

personal leadership and performance through a challenging year.

However, in acknowledgement of the termination of the First

Horizon ( FHN ) transaction and certain U.S. regulatory issues, the CEO

recommended, and the board approved, the $1 million reduction in

compensation," TD Bank said in a regulatory filing on Tuesday.

The board made no change to the CEO's total direct

compensation target for 2024.

Masrani, who also headed TD's U.S. operations before taking

the CEO role, is behind the bank's ambitious U.S. expansion

strategy as it looks for growth opportunities outside of home.

The $13 billion First Horizon ( FHN ) deal, which would have given

TD access to 12 states across the Southeast U.S., was called off

after a long wait for regulatory approvals last year.

The bank shortly afterwards said it was being probed by the

U.S. Justice Department about its compliance with

anti-money-laundering rules.

Masrani is also the fourth Canadian bank CEO to miss 2023

bonus targets.

Of the big five Canadian banks, Royal Bank of Canada ( RY )

chief Dave McKay was the only CEO to exceed his targets, making

him the highest-paid bank CEO in the country.

In fiscal 2022, Masrani's total compensation jumped 11.7%

and made him the highest-paid big five Canadian bank CEO after

RBC's McKay.

($1 = 1.3492 Canadian dollars)