Xavier Rolet leaves London Stock Exchange with immediate effect

London Stock Exchange said chief executive Xavier Rolet had left the company after weeks of wrangling over the terms of his departure.

LSE said the board had asked Rolet to leave immediately after eight years in charge. David Warren, LSE’s finance director, will take over as interim CEO.

Chairman Donald Brydon, who has been under pressure over Rolet’s departure, will also not stand for re-election to the board in 2019.

LSE announced on 19 October that Rolet would step down in 2018 but TCI Management, a major shareholder, opposed his departure and said the board had forced him out. TCI, a hedge fund which owns 5% of LSE, called for Rolet to be reinstated and for Brydon to be sacked.

On 10 November LSE gave in to TCI’s demand for a shareholder vote on whether Rolet should stay and Brydon should go. LSE had until 30 November to publish an explanation for Rolet’s departure.

LSE said Rolet had agreed that he would not return to the company under any circumstances. The company called on TCI to withdraw its demand for a shareholder meeting.

Rolet said: "Since the announcement of my future departure on 19 October, ‎there has been a great deal of unwelcome publicity, which has not been helpful to the company.

“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."

Rolet will spend his year’s notice on gardening leave. He will be eligible for a maximum bonus of 225% of salary for the 2017 financial year. Shares awarded under LSE’s long-term incentive plan and deferred bonus plan will vest, subject to performance conditions.