LSE turns to US banker after bitter boardroom bust-up

THE London Stock Exchange has picked a Goldman Sachs banker to be its chief executive after a bitter boardroom battle saw the previous boss booted out.

American David Schwimmer will take over in August after 20 years at the Wall Street bank, where he most recently headed its metals and mining division.

The 49-year-old could earn up to £4.5m this year, including a one-off payment of £1m to compensate him for money he would have got at Goldman. He will also be given ‘relocation support’ to help him move from New York to London.

Schwimmer, a married father of two, arrives at the LSE after one of the most turbulent periods in its near-450 year history. Frenchman Xavier Rolet, 58, was ousted in November after a public spat with chairman Donald Brydon. His departure – which followed an intervention from Bank of England governor Mark Carney – was opposed by some investors, including hedge fund boss Sir Chris Hohn.

The row cast doubt over the future of Brydon, who was blamed for masterminding the coup and has said he will stand down next year.

Schwimmer now faces the challenge of rebuilding bridges with the City as the hunt for a chairman gets under way. ‘We’re pleased to see clear leadership being put in place,’ a top-20 investor in the LSE said.

Schwimmer served as chief of staff to Goldman Sachs boss Lloyd Blankfein when he was president and chief operating officer.

He will be paid an annual salary of £775,000 and qualifies for bonuses worth many times this amount. He will be paid £1.05m next March as compensation for his bonus from Goldman and is in line for more.