The chairman and CEO of Cboe Global Markets, Edward Tilly, has resigned from his position effective immediately, following an investigation into his conduct launched in August 2023 by the firm’s board of directors.Â
Tilly was accused of undisclosed personal relationships with colleagues, with the board determining that his behaviour “violated Cboe’s policies and stands in stark contrast to the company’s values,” according to a statement released today.
He is replaced as CEO by Fredric Tomczyk, a current member of Cboe’s board of directors, and former president and CEO of Ameritrade. William Farrow III, currently lead director of Cboe, has been named non-executive chairman of the board.
“Cboe strives to uphold the highest ethical standards across the organization, and fully investigates and takes appropriate action when it determines that any of its policies have been violated,” said Farrow.
“Fred’s familiarity with Cboe’s business, combined with his multi-decade experience in the financial services industry, will provide stability and reinforce the company’s commitment to growth for Cboe, its associates, customers, index partners, and investors during this period of transition. We have every confidence that the company will continue to execute on Cboe’s mission of building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future.”
“New CEO appointment of a well experienced leader may be viewed positively,” said Morgan Stanley analysts Michael Cyprys and Sephanie Ma, pointing to Tomczyk’s “deep leadership experience” as CEO of Ameritrade for eight years 2008-16, prior to which he served as president and CEO of London Life and London Insurance Group.
“Tomczyk brings familiarity of the company and the strategy to his new role, having served on Cboe’s board since 2019,” said the analysts. “[The] unexpected news is a surprise, but does not change our Overweight thesis on the stock… we continue to see strong business momentum and a large opportunity set for the business.”Â
The leadership change follows a CFO shake-up earlier this year, in which chief accounting Jill Griebenow replaced former CFO Brian Schell.
Cboe’s stock rose around 3.25% during the early hours of trading today.
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