International Securities Exchange Holdings (ISE) has announced that David Krell, ISE’s president and CEO, will retire on January 1, 2008. He will remain on ISE’s board of directors and the board intends to elect Krell as its chairman, pending required approvals. Gary Katz, ISE’s COO, will succeed Krell as president and CEO at that time. Katz will also join ISE’s board of directors commensurate with his new position as CEO.
Krell and Katz are co-founders of ISE, have managed the company since its inception and have worked closely to lead ISE to its current position in the equity options exchange market. Their working relationship began in 1986 when Katz joined the options and index products division of the NYSE which Krell headed.
They founded ISE in 1997 along with William Porter, then chairman of E*Trade, and his colleague Marty Averbuch. Katz is one of the principal developers of ISE’s auction market structure and is named as inventor or co-inventor on six patents that ISE has received or applied for relating to its proprietary trading system and technology. As COO, Katz currently oversees ISE’s options exchange and stock exchange and has reponsibility for four of ISE’s corporate divisions: corporate initiatives, technology, marketing and finance,
Frank Jones, ISE’s chairman, says, “On behalf of ISE’s board of directors, I am delighted to announce that we intend to elect David Krell as our next chairman. David has guided ISE since its founding, and his expertise and vision will continue to further the company’s growth in this new role.” He continues, “It was my honour to take over the chairmanship from Ivers Riley and to serve ISE’s shareholders and board, and it will be my privilege to nominate David for this position. Following the transition, I will remain a member of the board and look forward to working with David and Gary in their new capacities.”
“I am very pleased to continue my service to the board in the role of chairman and am confident that Gary’s appointment as ISE’s next CEO will ensure a smooth and seamless transition, enabling the company to maintain its strategic direction in the years to come,” says Krell. “Gary and I have worked together for over twenty-one years, and there is no one more knowledgeable or better equipped to take over as CEO upon my retirement. Since ISE’s inception, Gary has been instrumental in defining the company’s long-term strategy and executing our key business objectives,” he continues. “As COO with oversight of the day-to-day operations of the company, his contributions to the growth and profitability of ISE have been invaluable, and this leadership will continue in his new role.”
ISE will be seeking changes to its corporate documents at its annual meeting on May 8, 2007 to allow Krell to be elected to the board and appointed chairman upon his retirement. Following stockholder approval, these changes will be subject to regulatory approval.