After an inquiry found that the chief executive officer failed to disclose personal relationships with employees, Cboe Global Markets Inc. announced that Edward Tilly has resigned, ending a ten-year period in which the company’s shares more than tripled.
The derivatives and securities exchange announced the appointment of Fredric Tomczyk as its new CEO, effective right now. Tomczyk is currently a director on the board of directors of Cboe.
“The board of directors determined that Mr. Tilly did not disclose personal relationships with colleagues, which violated Cboe’s policies and stands in stark contrast to the company’s values,” the Chicago-based business said in a statement.
At 9:45 in the morning, Cboe shares increased 2.6% to $155.60 in New York trade.
Lack of complete transparency
Tilly, 60, is the most recent CEO to be fired for having secret relationships with employees, which reflects the need for greater standards of conduct in the workplace following the #MeToo movement. According to the oil giant, Bernard Looney of BP Plc resigned last week due to his lack of complete transparency in a preceding examination. Steve Easterbrook, the CEO of McDonald’s Corporation, was let go in 2019 after engaging in a consensual relationship with a worker in violation of the company’s rules.
Tomczyk, 68, was vice chairman of TD Bank Financial Group prior to serving for eight years as president and CEO of TD Ameritrade Holding Corp. He was the president and CEO of London Life and the London Insurance Group before that. He joined the board of Cboe.
Keep some of his outstanding restricted stock units
Over the past few years, Cboe, formerly known as the Chicago Board Options Exchange, has completed a number of transactions. With the 2021 purchase of Aequitas Innovations Inc., the parent company of Toronto-based NEO Exchange, it has strengthened its international presence by growing in Europe, Asia, and North America. With the incorporation of cryptocurrency startup Eris Digital Holdings, it also offered additional asset classes. A new physical trading floor has also been established by the exchange.
Tilly had to give up equity awards worth around $10 million, according to Cboe documents, although he will be able to keep some of his outstanding restricted stock units.
The $8.8 million in severance pay and up to $892,000 in other benefits that he may have gotten if the resignation had taken place under different conditions were also ineligible for him to receive. Over the past ten years, he received income from Cboe totaling more than $70 million, including his salary, bonuses, and the value of vested equity awards, according to records.