LSE rejects investor claim that CEO is being forced out
THE London Stock Exchange Group has rejected claims by leading shareholder and activist hedge fund TCI that it was forcing out CEO Xavier Rolet, saying that it had followed a "proper governance process".
The exchange was responding to a letter TCI wrote to chairman Donald Brydon calling on him to stop the search for a new CEO immediately and resign, with the fund saying it had lost confidence in him.
TCI Fund Management, run by Chris Hohn and the LSE's fourth-biggest investor with a more than 5pc stake, said Mr Rolet's departure would damage shareholder value and that it wanted his contract extended to 2021.
LSE announced on October 19 that Mr Rolet would step down at the end of next year, a decade after he took charge and transformed the company with a string of deals.
LSE said on Monday that the UK's Financial Conduct Authority had been kept informed throughout the process, that Mr Rolet was helping pick his successor and was focused on his role as CEO.
TCI did not immediately respond to an emailed request for additional comment.
Mr Rolet, who joined the group from Lehman Brothers, said last year that he would leave if a merger with rival Deutsche Boerse went through. But the collapse of that deal in March meant the 57-year-old Frenchman opted to stay on for longer.
Under his leadership, the LSE's market value has risen from less than £1bn to almost £14bn. (Reuters)