TMX chief steps down despite no evidence of sexual misconduct

But the global markets operator says Lou Eccleston believes his early retirement is in its best interests

TMX chief steps down despite no evidence of sexual misconduct
Steve Randall

Unproven allegations of inappropriate behaviour have led to the early departure of the man in charge of Canada’s major stock exchange group.

Lou Ecclestone faced allegations concerning his behaviour with a female employee of TMX Group Ltd, the company which operates the Toronto Stock Exchange, TSX Venture Exchange, and Montreal Exchange, among others.

The claims were made in a Business Insider article in late November and TMX Group’s Board of Directors, through a special committee began an “expedited but thorough” investigation which found no evidence that Mr Ecclestone had engaged in sexual harassment or sexual misconduct while employed by TMX.

However, the company said that Ecclestone believes that his early retirement – his contract as CEO was due to expire on December 31, 2020 – is in the best interests of the TMX Group including its employees and shareholders.

"The Board accepts Mr. Eccleston's decision to retire and recognizes his outstanding efforts since taking on the CEO role in October 2014,” said Charles Winograd, Chair of TMX Group. “We thank him for his leadership of TMX Group and for delivering a focused and compelling business strategy and growth plan that is driving our continued success.”

The Board of Directors says it is concluding the investigation into the historical sexual harassment and sexual misconduct allegations to avoid further distraction to the company.

Search for successor
The company will be led by TMX Group John McKenzie as interim CEO while a search is conducted to find a successor to Mr Ecclestone including both internal and external candidates.

McKenzie has been with the company for 19 years and will continue to serve as chief financial officer alongside the interim CEO role.