LSEG’s Rolet steps down with immediate effect

Xavier Rolet departs immediately due to “great deal of unwelcome publicity, which has not been helpful to the company”.

The London Stock Exchange Group’s (LSEG) chief executive officer has stepped down from his position with immediate effect, after weeks of controversy around his decision to leave.

LSEG confirmed David Warren, chief financial officer, will take over from Xavier Rolet as an integral leader as the exchange seeks a permanent successor.

Rolet commented: “Since the announcement of my future departure on 19 October, ‎there has been a great deal of unwelcome publicity, which has not been helpful to the Company.

“At the request of the board, I have agreed to step down as CEO with immediate effect. I will not be returning to the office of CEO or director under any circumstances.”

Rolet’s departure has been the subject of scrutiny in recent weeks after LSEG majority shareholder TCI Fund Management wrote to the exchange challenging the move.

In a letter, TCI called on the LSEG to hold an emergency meeting on Rolet’s future with the firm and asked chairman, Donald Brydon, be removed from his position.

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

Within a statement about Rolet’s immediate departure, LSEG said Brydon has now said he will not stand for re-election at the annual general meeting of in 2019.

“[Brydon] and the board believe that at that point it would be in shareholders' interests to have a new team at the helm to steer the future progress of the Company,” the LSEG said.

Furthermore, the exchange operator has requested TCI withdraw its requisition for a general meeting and resolution to the continued tenure of Brydon.

If TCI does not withdraw, LSEG added it plans to publish a shareholder circular confirming the date of a general meeting and a proposed resolution.

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