London Stock Exchange CEO Xavier Rolet to step down early after boardroom row

London Stock Exchange also said that chair Donald Brydon will also not stand for re-election next year

Mr Rolet, who has been chief executive of the LSE Group since 2009, will walk away with a potential payoff of £13m (Reuters)

London Stock Exchange chief executive officer Xavier Rolet is to step down with immediate effect following a boardroom battle over his future, but will walk away with a potential payoff of up to £13m.

Mr Rolet was due to step down at the end of next year, but the group said in a statement on Wednesday morning that he will now go with “immediate effect” following a request by the board.

He will be replaced by chief financial officer David Warren on an interim basis until a permanent successor is found.

Mr Rolet said he had been asked to leave by the board after “unwelcome publicity” following the announcement of his departure on 19 October.

In a statement announcing his departure, he said: “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.”

“I am proud of what we have achieved during the past eight and a half years,” Mr Rolet added.

He leaves with payoff worth up to £13m, which includes a year's salary as well as potential bonuses.

The LSE said that Donald Brydon, chairman of the group, will also not stand for re-election at the annual general meeting in April 2019.

The decision by Mr Rolet comes after a dispute between the group and shareholder The Children’s Investment Fund Management.

Last month, Christopher Hohn, founder of the TCI, accused LSE’s chairman Donald Brydon of trying to push Mr Rolet out against his wishes.

LSE said in a statement: “If TCI does not withdraw its requisition in full, the board intends to publish a shareholder circular confirming, among other things, the date of the general meeting at which the proposed resolution or resolutions will be put.”

Speaking at a news conference on Tuesday, Mark Carney, the Bank of England governor, said he was “mystified” by the ongoing row over the departure, Reuters reported.

“I can’t envisage a circumstance where the CEO stays on beyond the agreed period and so I think it’s in the interest of all parties involved that clarity is provided as soon as possible,” he said.