LSE chief executive Rolet quits

london — London Stock Exchange CEO Xavier Rolet is stepping down immediately and its chairman will not seek re-election, as the exchange tries to draw a line under a row with a top shareholder over management succession.

Rolet had previously said he would leave at the end of 2018, but activist hedge fund TCI accused Chairman Donald Brydon of pushing him out and called a shareholder meeting to try to reverse the decision and oust Brydon.

The LSE board has asked TCI to say by 1300 GMT on Wednesday if it will withdraw its shareholder meeting request to “avoid further disruption and potential damage to the At the request of the board, I have agreed to step down as CEO with immediate effect Xavier Rolet,

CEO, London Stock Exchange

company”. The row - coming at a tricky time for the LSE as it risks losing a chunk of its derivatives clearing business to erstwhile merger partner Deutsche Boerse due to Brexit - had dragged in the Bank of England.

Rolet’s departure after 8-1/2 years in charge could trigger fresh speculation that a rival exchange such as ICE could bid for the LSE, though analysts say any megabourse deal would face intense scrutiny by competition authorities. In a statement issued by the LSE on Wednesday, Rolet said there had been a “great deal of unwelcome publicity” surrounding his departure “which has not been helpful to the company.”

“At the request of the board, I have agreed to step down as CEO with immediate effect. I will not be returning to the office of CEO or director under any circumstances,” he added. — Reuters