- After around 10 years in the position
- Fred Tomczyk taking over
(exechange) — Chicago, Illinois, September 19, 2023 — Ed Tilly, chief executive of Cboe, leaves his position. As announced by Cboe Global Markets Inc. in a news release and in a regulatory filing published on Tuesday, September 19, 2023, Edward T. (Ed) Tilly has left his post as chief executive officer at the derivatives and securities exchange network, after around 10 years in the role, effective September 18, 2023.
Generally speaking, it raises questions when a CEO leaves his post abruptly.
Ed Tilly’s duties as CEO will be taken over by Fredric J. (Fred) Tomczyk, a former President and Chief Executive Officer at TD Ameritrade Holding Corporation.
Already a director
Tomczyk has already been a member of the board of directors of Cboe. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. Directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Tomczyk understands the expectations and dynamics of the board and has knowledge of Cboe’s organization, risk-management practices and strategy.
“Violated Cboe’s policies”
The management change is explained as follows. Cboe stated: “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 conduct was not related to and does not impact the company’s strategy, financial performance, technology and market operations, reporting, or internal controls.”
Precise information regarding Ed Tilly’s future plans was not immediately available.
“Resigned/voluntarily terminated his employment”
Cboe said: “Mr. Tomczyk succeeds Edward T. Tilly, who has resigned from the company following the conclusion of an investigation led by the Board of Directors and outside independent counsel that was launched in late August 2023.”
Cboe further said: “On September 18, 2023, Edward T. Tilly, Chief Executive Officer of Cboe Global Markets, Inc. (the “Company”), resigned and voluntarily terminated his employment with the Company without Good Reason (as defined under his existing employment agreement with the Company), effective as of September 18, 2023 (the “Effective Date”). Mr. Tilly also resigned from the Company’s Board of Directors (the “Board”), effective as of the Effective Date.”
Share price increase since September 2018
The announcement follows an increase in Cboe Global Markets Inc.’s share price of 46% since September 2018.
In the position of CEO since 2013
Ed Tilly became CEO of the Company in 2013.
Tilly has served as the Company’s Chairman and Chief Executive Officer (“CEO”).
Tilly has served as Cboe Global Markets’ Chairman since February 2017 and as CEO and a director since May 2013.
He also served as the Company’s President from January 2019 to May 2022.
Prior to that, he served as the Company’s President and Chief Operating Officer from November 2011 to May 2013 and as Executive Vice Chairman from August 2006 until November 2011.
He was a member of Cboe Options from 1989 until 2006, and served on its Board from 1998 through 2000, from 2003 through July 2006, and from 2013 to the present, including as Member Vice Chairman from 2004 through July 2006 and as Chairman from February 2017 to the present.
He holds a B.A. degree in Economics from Northwestern University.
No statement by Ed Tilly
The announcement of his departure as CEO does not include a statement by Ed Tilly.
Push-out Score for Ed Tilly’s move determined
The Push-out Score indicates on a scale of 0 to 10 how likely it is that Ed Tilly was pushed out or felt pressure to leave his position.
exechange reached out to Cboe and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 39.2023 ($).