Telecity’s Michael Tobin quits and sends share price tumbling

 
Oliver Smith
Follow Oliver
Michael Tobin said it was “time to move on” (Source: telecitygroup.com)
Shares in data centre provider Tele­city plunged nearly six per cent in trading yesterday following the shock resignation of outspoken chief executive Michael Tobin.

In a statement Tobin said it was “time to move on. Having led the company for over a decade… the board and I agree that with the business in excellent health, now is the time… to explore other important opportun­ities and to make way for a new chief executive to take the company to the next stage of its development.”

The company said Tobin would step down at the end of October. And it added that it would begin an immediate hunt for a new chief executive.

Tobin will receive a “golden good­bye” of more than £750,000, plus £70,000 in compensation for statutory claims arising from the termination of his employment, and £10,000 (plus VAT) of outplacement counselling.

“Michael Tobin has helped to grow TelecityGroup into the leading premium data centre provider in Europe, creating a highly valuable business with a great future and delivering significant returns to shareholders,” said chairman John Hughes.

“After his decade of leadership, he and the board have concluded that now is the right time for a new leadership team to take the company to the next stage.”

Telecity shares closed down 5.98 per cent at 716p.

Related articles