The Courier & Advertiser (Perth and Perthshire Edition)
Chairman of London Stock Exchange to learn fate after vote
London Stock Exchange Group chairman Donald Brydon will learn his fate when shareholders decide whether to oust him over the departure of former chief executive Xavier Rolet.
The group has been caught in a lengthy row with activist investor the Children’s Investment Fund (TCI), which claims shareholders have lost faith in the chairman after he dismissed a “world class CEO without good reason”.
TCI, which owns more than 5% of the LSE, has secured the shareholder vote that will decide Mr Brydon’s own future.
However, a string of major investors and shareholder groups have thrown their support behind the chairman, making it less likely he will be forced to step down at the extraordinary meeting.
The Qatar Investment Authority (QIA) has taken a position to support the chairman, as it believes the LSE would not benefit from his immediate departure as the CEO succession process is under way.
QIA, which owns more than 10% of LSE, is the second largest stakeholder behind BlackRock, which also reportedly plans to vote against Mr Brydon’s dismissal.
Similar concerns were raised by Institutional Shareholder Services (ISS) last week, which recommended investors oppose the motion.
“Support for the removal of the chairman would equate to a strong judgment call against the board,” ISS said.
“Keeping Donald Brydon as chairman for a limited time would provide stability and continuity and he has substantial experience hiring CEOs.”
The LSE has confirmed Mr Brydon will not stand for re-election in 2019 but this stops short of meeting the TCI’s demands for his immediate removal.
At the start of its campaign, TCI had also been calling for the LSE to retain Mr Rolet in his position as CEO until at least 2021, but those hopes were scuppered after the chief stepped down prematurely at the end of last month.