Bank of England Governor Mark Carney has signalled that he would ignore calls to interfere in a dispute over the ousting of London Stock Exchange Group PLC (LON:LSE) chief executive Xavier Rolet.
Hedge fund manager Sir Chris Holn last week urged the BoE to step in and remove LSE chairman Donald Brydon, claiming he has forced out Rolet against his will and should stay.
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But Carney said he is “mystified” by the dispute and that he thinks its unlikely Roley will continue as chief executive.
Speaking in London after the Bank published the results of its stress tests of UK banks, Carney said:
"We can’t envisage a situation where a CEO stays beyond the agreed period. But it’s in the interest of all parties involved that clarity is provided as soon as possible."
His call for clarity comes as the LSE board has failed to provide a satisfactory answer on the reasons for Rolet’s departure.
READ: LSE boss Xavier Rolet steps down as it reports third quarter revenue and profit growth
Hohn, whose The Children's Investment Fund owns 5% of the LSE, has said he believes that removing Rolet would hurt shareholders and claims confidentiality agreements are denying the chief executive the chance to explain why he is leaving.
However, Carney said the LSE had told the Bank about a succession plan before announcing the resignation of Rolet last month and has been kept updated on the plans.
He said Rolet has made a “extraordinary contribution” to the LSE over the past nine years but “everything must come to an end”.
The BoE regulates the LSE as it oversees the payment systems of the group’s clearing house LCH.