Xavier Rolet said he would step down immediately as CEO of London Stock Exchange Group Plc after a weeklong dispute between the board and a hedge fund activist who demanded he remain in office.
Rolet resigned following a board request, and will be replaced in the meantime by CFO David Warren, said the exchange in a statement on Wednesday. The LSE also requested the activist shareholder TCI Fund Management, which owns 5 percent of the shares, to withdraw its demand for a general meeting. Shares fell 2 percent.
It is the second announcement about the departure of Rolet. On October 19, LSE said Rolet was due to resign by the end of 2018. TCI boss Christopher Hohn campaigned to keep him and asked LSE president Donald Brydon to leave while demanding a shareholders meeting on the issue. affair. Brydon will not run for re-election in 2019, LSE said Wednesday.
"Since the announcement of my future departure on October 19, there has been a lot of unwelcome publicity, which has not been useful for the company," Rolet said. "I will not return to the office of CEO or director under any circumstances, I am proud of what we have achieved over the past eight and a half years."
This debacle in the boardroom is a shame for London: Gadfly
The 58-year-old man became CEO of LSE in May 2009 after a career in commerce that began in the 1980s at Goldman Sachs Group Inc. Under Rolet, LSE shares have multiplied by almost six.
His profile grew when he agreed to sell the LSE to Deutsche Boerse AG, a plan that would have created a giant with a combined market capitalization of some $ 30 billion. The $ 14 billion acquisition was blocked by regulator concerns that it would have created a "de facto monopoly."
In an unusual move, the Governor of the Bank of England, Mark Carney, got into the argument, saying yesterday that the company should clarify the LSE's dominant position in the cleanup has made that business a football game politician among politicians after the Brexit vote. In today's statement, LSE said it had maintained the Bank of England and the Financial Conduct Authority. informed of his succession plans since the end of September.
The ball is now in the TCI court. If TCI does not withdraw its demand from the general meeting, LSE said it will issue a circular for shareholders no later than tomorrow confirming the date of the meeting. It will also contain potentially negative details about Rolet's management style that the board Will use to protect against wrong accusations Ed the CEO to leave. The meeting must take place before Christmas.
TCI declined to comment on Wednesday.
Today's announcement is expected to "mark a line under this unwanted attention and allow the group to refocus its attention on the execution of its strategies," said Numis Securities badyst Jonathan Goslin. He said he considers Rolet "very respectful" and that "all this disaster is somewhat disconcerting."
Rolet leaves the LSE in the financial terms that were agreed upon at the time of the October announcement that he would resign a little over a year. Rolet, a Frenchman who grew up in Algeria, can still get a bonus for 2017, the company said in the statement.
LSE shares fell 2 percent to 3,725 pence at 8:51 a.m. in London operations. Morgan Stanley said today in a note that uncertainty will likely affect stocks in the short term.
The BVL has recovered 28 percent this year.
– With the badistance of Nishant Kumar and Sam Unsted