Stock exchange chairman wins shareholder backing

Shareholders have voted against the removal of London Stock Exchange Group (LSE) chairman Donald Brydon, ending a bitter battle with an activist investor over his leadership.

By The Newsroom
Tuesday, 19th December 2017, 5:27 pm
Updated Tuesday, 19th December 2017, 5:31 pm
LSE chairman Donald Brydon
LSE chairman Donald Brydon

An extraordinary general meeting held in London on Tuesday resulted in 79.07% of votes being cast against a resolution calling for Mr Brydon’s immediate removal, despite claims he pushed out former chief executive Xavier Rolet who stepped down prematurely last month.

The motion, which was sparked by a lengthy row with activist investor the Children’s Investment Fund Management (TCI), received 20.9% votes in favour.

The result was widely expected after a string of major investors and shareholder groups threw their support behind the chairman in recent weeks.

The chairman stopped short of calling out TCI by name but said that the battle had created a “major distraction for the company that is not in the interests of the vast majority of shareholders”.

The former chief executive is now on gardening leave for 12 months, during which time he will be paid his £800,000 a year salary in full with a host of potential bonuses - together worth up to £13 million.