TMX CEO Tom Kloet likely to stay at helm till this fall -sources

Thu Aug 7, 2014 3:45pm EDT
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By Alastair Sharp, Euan Rocha and John McCrank

TORONTO/NEW YORK Aug 7 (Reuters) - Tom Kloet, who was initially set to bow out later this month as chief executive of Toronto Stock Exchange operator TMX Group Ltd, is now likely to stay on until at least October as TMX hunts for a long-term replacement, seven financial industry sources familiar with the succession process said.

Three of the seven sources, all of whom spoke on condition of anonymity because the process is not public, said the exchange operator is leaning heavily in favor of an external candidate, but that the board may fall back on an internal name if it is unable to find a suitable candidate from outside the company.

Those three Canadian-based sources also said TMX's board is working with global head hunting firm Korn Ferry in its search, and that a number of candidates that the headhunter had tapped have not tossed their names into the hat for a variety of reasons.

A decision on a successor to Kloet is still likely to be reached this month, even if the official handover takes a little longer than TMX had initially planned, two of the Canadian-based sources said.

A TMX spokeswoman declined to comment on the process.

TMX said in March that Kloet would retire at the end of August after being in the job six years, during which he oversaw the company's acquisition by a group of Canadian financial institutions, and the addition of a clearinghouse and a small stock exchange to the entities under its umbrella.

TMX is set to report its quarterly results after the close of trade on Thursday, and investors are keen to get some clarity on its succession plans.

A separate source said the selection committee recently held a final round of interviews with the four or five candidates who are frontrunners for the job.   Continued...