ISS Urges Investors of London Stock Exchange Not to Support TCI’s Plot to Oust Chairman

    An influential shareholder advisory group is asking investors of London Stock Exchange to refuse calls by one of the best performing hedge funds in Britain to oust its chairman.

    ISS states that LSE shareholders should vote against a motion to oust Donald Brydon.

    The vote is set to take place on the 19th of December at an emergency shareholder meeting that was brought by TCI, an activist manager.

    TCI is the fund manager for the Children’s Investment Fund of Sir Christopher Hohn, which owns a five percent stake in the stock exchange.

    Hohn has been enraged by the ousting of Xavier Rolet, the chief executive, and believes that Brydon has managed a “poor process” in its succession management.

    However, on a share note, ISS stated that “perceived” failures on corporate governance had “not been sufficiently substantiated at this time.”

    TCI believes that the recent expedited dismissal of Rolet came without the LSE board “providing any good reasons.” The hedge fund stated that looking for a new “world class” CEO will be a hurdle under the chairmanship of Brydon.

    With regards to the history of Brydon on ousting chief executives, TCI will note five incidents that are stretching back to 1996. The first of which was at the LSE itself, as Brydon was a board member when Michael Lawrence, its chief executive, was fired. However, the examples also cover his time at Scottish Power, Allied Domecq, Smith’s and Sage.