Toronto stock exchange chief to retire in August

Tue Mar 18, 2014 1:41pm EDT
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By Alastair Sharp and Solarina Ho

TORONTO (Reuters) - TMX Group Ltd (X.TO: Quote) Chief Executive Thomas Kloet is set to retire at the end of August after six years as head of the company that operates the Toronto Stock Exchange, a period that included its acquisition by a consortium of some of Canada's biggest banks and pension funds.

Kloet, a 30-year veteran of the exchange industry, will step down August 31, the company said late on Monday.

Analysts said they did not expect Kloet's successor to embark on a major strategic shift. They said the new chief executive could come from within the company, from one of the banks or pension funds in its ownership consortium, which is known as Maple Group, or from completely outside TMX circles.

"I don't think the Maple Group would be hell-bent on drastic change in leadership or strategic direction for the company," said Shubha Khan, an analyst at National Bank Financial.

"I think that whoever succeeds Tom Kloet, be it internally or externally, will follow the path Tom Kloet had embarked on from the outset," he said.

Kloet became chief executive of TMX in 2008 and led the company through a significant expansion, including opening offices in New York, London, Sydney and Beijing.

TMX spokeswoman Carolyn Quick said Kloet intended to remain hands-on until his last day and then planned to spend more time at his new home in South Carolina and expand his work as a board member at other companies.

While the TMX's fortunes have improved since the financial crisis, it has struggled more than many stock markets around the world due to its reliance on new issues and capital-raising by the cyclical energy and mining sectors.   Continued...

TMX Group Inc. Chief Executive Officer Thomas Kloet speaks during the annual general meeting of shareholders in Toronto May 11, 2012. REUTERS/ Mike Cassese