Xavier Rolet, the London Stock Exchange CEO, has announced his immediate resignation following an ultra high profile quarrel. The argument was between the board and an activist investor and took its place among the most widely publicized of its nature in British history.
Rolet Intended to Resign in 2018
The CEO had already revealed his intentions to step down from his post in 2018. However, the board requested an earlier resignation and he complied. TCI Fund Management stated that in October, Rolet had been pressured to leave against his will and had been demanding to remain within his position. He had suggested that Chairperson Donald Brydon resign instead.
The board disagreed and remained firm about its decision. It also reportedly intended to release a dossier with potentially negative implications about Rolet in order to uphold a defense against accusations by Christopher Hohn, the head of TCI.
As Rolet’s resignation is immediate, Chief Financial Officer David Warren will be taking over as interim CEO until a replacement Is found. Brydon’s days are also numbered, though they will be considerably longer than Rolet’s. He will be staying in his position until 2019, at which point he will not stand for re-election, said the London Stock Exchange.
The stock exchange requested of TCI – a 5 percent owner – to rescind its prior requirement for an emergency shareholder meeting on the topic of the CEO. Shares had fallen by 2.4 percent before the eliminating the losses.
Rolet Became CEO 8 Years Ago
Xavier Rolet stepped up as the London Stock Exchange CEO in May 2009. At that time, he had already led a thorough trading career which was first launched in the 80s at Goldman Sachs Group Inc. Upon his resignation, it becomes yet another significant change during the Brexit transition and on the heels of a failed Deutsche Boerse AG merger.
With Rolet at the hem, the London Stock Exchange developed into the largest clearinghouse in the world, with its stock seeing a near six-times increase.
“There has been a great deal of unwelcome publicity, which has not been helpful to the company,” said Rolet in his media statement. “I will not be returning to the office of CEO or director under any circumstances. I am proud of what we have achieved during the past eight and a half years.”