Thu, Nov 30, 2017 - Page 12 News List

LSEG boss Rolet departs a year early

PUSHED OR JUMPED?The Frenchman’s management style has been controversial even as the firm’s market value soared, but two failed merger deals did not help

AFP, LONDON

London Stock Exchange Group PLC (LSEG) chief executive Xavier Rolet has left his post, the group said yesterday, bringing forward a planned departure amid talk that he had been forced to step down.

“At the board’s request, Xavier Rolet has agreed to step down as CEO with immediate effect,” the exchange said in a statement.

Chief financial officer David Warren has been appointed interim chief executive and will carry out both roles until a successor to Rolet is found, LSEG said, adding that chairman Donald Brydon is to step down in 2019.

LSEG, which also owns the Milan stock exchange, last month announced that French national Rolet, who took over in 2009, would leave by the end of next year.

“Since the announcement of my future departure on Oct. 19, there has been a great deal of unwelcome publicity, which has not been helpful to the company,” Rolet said in the statement.

“I am proud of what we have achieved during the past eight-and-a-half years,” he said.

The Children’s Investment Fund questioned whether Rolet chose to leave or was pushed out by a board of directors amid reported concerns over his management style.

When asked by a reporter about the matter on Tuesday, Bank of England Governor Mark Carney called for clarity on the contested departure and suggested his exit should go ahead.

Under Rolet’s stewardship, the company’s market value has rocketed in value.

It has bought US asset manager Russell to diversify and boost its business in the US, in addition to purchasing LCH.Clearnet, the British clearing house.

However, also on his watch, the LSEG failed in separate attempts to merge with the Toronto Stock Exchange and earlier this year with Germany’s Deutsche Boerse.

The EU in March blocked a proposed blockbuster tie-up of the London and Frankfurt stock markets owing to competition concerns and fallout from Brexit.

“The board is confident LSEG will continue to prosper with David Warren as interim CEO and the existing strong management team,” Brydon said.

“We acknowledge, as I said last month, Xavier’s immense, indeed transformative, contribution to the business,” he said.

Rolet has said that more British firms would move business to EU nations should Britain fail to hammer out a post-Brexit transition deal by the end of the year.

British Prime Minister Theresa May has backed a two-year transition period to ease the effects on the UK’s economy, but she is beset by divisions within her own Conservative Party and talks with Brussels are stalled over the size of the nation’s exit bill.

Rolet became chief executive of LSEG in May 2009, replacing Dutchwoman Clara Furse, who had begun the process of steering the group through the global financial crisis.

He has spent nearly 35 years working for a number of major financial institutions. Prior to joining LSEG, Rolet headed the French operations of Lehman Brothers shortly before the collapse of US investment group that spread havoc through the world’s financial system.

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