With the resignation last month of beleaguered LSE chief Gavin Casey, Europe’s largest bourse has burned through three CEOs in one decade. And the next chief may face even more difficult working conditions.
For starters, it’s not certain that national exchanges will be around for much longer. The LSE, which converted from a membership organization to a publicly traded company in August, recently abandoned a plan to merge with Deutsche Börse. The exchange is fighting a $1.19 billion hostile bid from Sweden’s OM Group and faces the possibility of more hostile attacks from European bourses.
The LSE’s shareholders are pretty fierce, as well. The exchange’s fractious environment was on display during its first annual general meeting, on September 14, the day before Casey’s resignation. Speaker after speaker hurled stinging criticisms at Casey and the battered LSE board. “The exchange has become an embarrassment. . . . Could we expect some resignations?” asked one. Casey, who had served as CEO for four years, remained silent throughout the session. Less than 24 hours later, he had fallen on his sword.
Who would want to step into this mess? For the time being, exchange chairman Don Cruickshank has assumed Casey’s responsibilities. Around City dining rooms, names being discussed include Ed Warner, chief executive of Old Mutual Securities; Liffe CEO Brian Williamson; Philip Thorpe, second in command at the Financial Services Authority; David Clementi, deputy governor of the Bank of England; and Ian Plenderleith, an executive director of the Bank of England.
