Bloody nose for LSE chairman
But grandee fends off bid to sack him after bitter battle with investors
THE chairman of the London Stock Exchange was given a bloody nose by the City as he survived a vote which could have seen him sacked.
Shareholders controlling nearly 40pc of the stock refused to back Donald Brydon following a bitter battle with a top investor over the running of the company.
Of those that voted in the ballot over his future yesterday, 20.9pc wanted him to go. But 79.1pc of voting shareholders backed the 72-yearold to stay on – meaning Brydon can remain as chairman of the LSE until 2019 when he has agreed to leave.
Despite surviving yesterday’s revolt, Brydon ( pictured) faced further questions over his stewardship of the LSE last night.
Hedge fund boss Sir Chris Hohn, who has led the campaign against Brydon following the ousting of chief executive Xavier Rolet, said the vote represented a ‘serious rebuke’.
The 51-year-old billionaire, who owns 5pc of the LSE through The Children’s Investment Fund, said: ‘A chairman of a major FTSE 100 company is expected to command the overwhelming support of shareholders.
‘This is no longer the case. It is therefore imperative that a search begins immediately for a new chairman as there is no justification for waiting until 2019.’
He added ‘the chairman must take responsibility’ for a ‘major corporate governance failure at the London Stock Exchange’.
The vote was arranged by Hohn after the LSE board ousted Rolet – triggering a backlash among supporters who wanted the Frenchman to stay.
The row at the LSE started in October when Rolet unexpectedly announced plans to quit and refused to say where he was going. It enraged Hohn who suspected a secret plot to get rid of Rolet demanded shareholders sack Brydon instead.
Speaking during the meeting, Brydon attacked Hohn for ruining a carefully laid plan to replace Rolet. He said: ‘A carefully calibrated succession process was put in place, however difficult, but sadly the actions of a few shareholders have disrupted that process creating a major distraction for the company.’
In a blow for the LSE, which is meant to be a bastion of good governance, the revolt against Brydon will have to be entered into an official register of rebellions because more than a fifth of votes cast were against the board’s recommendation.