TRADING VENUES

LSEG agrees to shareholder vote on Rolet’s departure

TCI Fund Management calls for removal of Donald Brydon amid claims Xavier Rolet was forced out of the exchange group.

By Hayley McDowell hayley.mcdowell@strategic-i.com November 13, 2017 11:51 AM GMT

The London Stock Exchange Group (LSEG) has agreed to hold a shareholder vote that could see Xavier Rolet remain in his position until 2021.

Majority shareholder TCI Fund Management has called on the LSEG to hold an emergency meeting on Rolet’s future with the firm. In a letter to the exchange, TCI also asked for chairman, Donald Brydon, to be removed from his position.

TCI Fund Management claimed it was Brydon’s decision to remove Rolet and added he failed to fully explain to shareholders the reasons behind Rolet’s departure.

Rolet’s intentions to depart the Group by the end of December 2018 were announced in October, but when questioned, the LSEG informed TCI Fund Management the reason behind the decision was “succession planning”.

Initially, LSEG noted the letter it received from the fund manager but countered it had “followed a proper governance process to plan an orderly succession for the CEO”.

However, this weekend the exchange agreed to the terms and it will hold an emergency shareholder meeting to discuss Rolet’s future with the firm.

The shareholder vote could see the search for the new CEO immediately halted, the removal of Brydon and Rolet’s tenure extended until 2021.

LSEG said it will publish details on the meeting “as soon as reasonably practical”.