Carney Weighs Into Contested Departure Of LSE Boss

Mohammad Ali (@ChaudhryMAli88) Published November 28, 2017 | 06:55 PM

The head of the Bank of England called Tuesday for clarity on the contested departure of London Stock Exchange chief Xavier Rolet and suggested his exit should go ahead

London, (APP - UrduPoint / Pakistan Point News - 28th Nov, 2017 ) :The head of the Bank of England called Tuesday for clarity on the contested departure of London Stock Exchange chief Xavier Rolet and suggested his exit should go ahead.

"Everything comes to an end," said BoE governor Mark Carney, when asked about the ongoing spat at a press conference on the outcome of banking stress tests. London Stock Exchange Group announced in October that Rolet would leave the company by the end of 2018 after almost a decade in charge.

Activist investor The Children's Investment Fund (TCI), which holds five percent of LSEG, has since questioned whether Rolet chose to leave or was pushed out by a board of directors amid reported concerns over his management style.

LSEG is meanwhile due to hold a shareholder meeting before the end of the year to discuss and vote on whether Rolet should be asked to stay until 2021. "I'm a bit mystified about the debate because we knew about the succession plan, we stayed close to the situation," said Carney on Tuesday, responding to a reporter's question on the row.

"I can't envisage a situation where a CEO stays on beyond the agreed period." LSEG shareholders will also discuss the possible ousting of chairman Donald Brydon -- who TCI hold responsible for what they see as a premature eviction of a successful boss.

Frenchman Rolet joined LSEG in 2009, after his Dutch predecessor Clara Furse started steering the group through the global financial crisis. Rolet transformed the group into a global financial heavyweight, overseeing a surge in the company's market value to nearly 14 billion ($18.5 billion, 15.7 billion Euros) from 800 million.

Under his management, the company bought US asset manager Russell for $2.7 billion to diversify and boost its business in the United States, and also bought British clearing house LCH.Clearnet. But its attempt to merge with Franfurt stock markets were blocked earlier this year by the European Union, which cited concerns about competition and the fallout from Brexit.