ASX boss quits as police probe his other company

Resignation follows investigation into company which ASX's CEO is a board member.

The Australian Securities Exchange (ASX) has confirmed that its chief executive officer Elmer Funke Kupper has resigned after Australian Federal Police launched an investigation into another company of which he is a board member.

Funke Kupper is a board member of gambling group Tabcorp, which last week became subject of a corruption investigation over business practices in Cambodia.

The news comes four and a half years after Kupper was appointed as CEO and managing director at ASX.

In a statement to the market today, the company said that chairman Rick Holliday-Smith will take on the role of executive chairman while a search team looks for suitable candidates.

Holliday-Smith explained: “Elmer has demonstrated leadership and energy during his time at ASX. He hands over a stronger team and a core franchise well positioned for future opportunities.

“His legacy is a globally competitive, more externally focused company, which is committed to innovation and investment in the customer services and infrastructure that are at the heart of Australia’s financial marketplace

Holliday-Smith reassured the market that the company has an “experienced senior executive team” capable of managing the business while it searches for a new chief executive officer.

He added: “The ASX Board accepted that Elmer wanted to direct his full focus to the investigations which may be made into the Tabcorp matter – and not have them interfere with the important role of leading the ASX.

“The Board has also decided that Elmer will be paid in lieu of the notice period in his contract, 2016 pro-rata STI, and the 2014 and 2015 deferred STI on 1 July 2016 and 1 July 2017 respectively.”