Outgoing London Stock Exchange (LSE) boss Xavier Rolet is subject to a “confidentiality agreement” stopping him from discussing his departure, according to an activist investor.
Sir Christopher Hohn, the lead manager of The Children’s Investment (TCI) fund, sent a letter today to LSE chairman Donald Brydon calling for the company to lift the non-disclosure deal, according to the Financial Times.
“It is surprising the regulators have not forced the company to remove the confidentially agreement because the LSE is a systemically important financial institution,” Hohn told the FT.
The prominent activist investor last week began a campaign to keep Rolet at the helm of the company, saying his retirement will damage shareholder value and claiming Brydon is forcing out the chief executive.
In a letter sent by TCI to the company at the end of last week Hohn demanded the board reinstate Rolet.
Hohn has threatened to call an extraordinary general meeting (EGM) demanding Brydon resign if Rolet’s contract is not extended. TCI holds a stake of more than five per cent in LSE, allowing him to call the EGM.
The London Stock Exchange could not be reached for comment tonight.