LSE shareholders reject attempt to oust chairman Brydon

London Stock Exchange shareholders have voted down an activist investor's attempt to sack LSE chairman Donald Brydon.

At a specially convened meeting, LSE shareholders voted 79% to 21% against a resolution calling for Brydon's immediate removal from the board.

Christopher Hohn's TCI Fund Management called for Brydon to leave after Xavier Rolet was ousted as chief executive of LSE in October. Hohn, whose fund owns 5% of LSE, accused Brydon of forcing Rolet out against the interests of shareholders.

Hohn put forward resolutions calling for Rolet's reinstatement and Brydon's departure. In November, Rolet agreed not to return to the company and Brydon said he would leave in 2019 but Hohn pressed ahead with his attempt to get rid of Brydon.

Brydon said: "The board would like to thank shareholders for their support today. The board and I welcome the stability that this gives the group. The recruitment process for a new CEO is underway and we will update our shareholders in due course."

The boardroom power struggle was an unusually public airing of internal strife by one of Britain's most prestigious companies. Bank of England Governor Mark Carney was drawn into the dispute when he called for the matter to be resolved and said he could not envisage Rolet staying on without board support.

Commenting on the outcome of the meeting, Andrew Bailey, the head of the UK's financial markets watchdog, said: "The FCA has a statutory objective to ensure the integrity of the markets it regulates. Today’s vote should now lead to an orderly process of succession of the CEO and then the Chair of the LSE as set out by the Board. It is important that everyone supports and contributes positively to that process."