TD Ameritrade Shakes Up Its Board

TD Ameritrade (AMTD) made changes to its mergers and acquisitions sub-committee Monday, excluding representatives from its largest shareholders, TD Bank (TD) and the Ricketts family.

The move is considered a step in the right direction by U.S.-based hedge funds, Jana Partners and SAC Capital, but further changes are still required regarding how the company evaluates potential deals, the two funds said in a letter sent to Ameritrade's board.

The funds claim TD Bank, which owns a 40% stake in Ameritrade, has too much influence on the M&A process and counter to the interests of the remaining shareholders, could prevent a deal from being made.

Both Jana and SAC want Ameritrade to pursue a merger with a competitor such as Charles Schwab (SCHW) or E-Trade Financial (ETFC).