Cboe CEO Edward Tilly resigns for undisclosed relationship

Edward Tilley, chief executive and chairman of Chicago Board Options Exchange Global Markets, has resigned, bringing his decade-long career at the helm to an abrupt end after he failed to disclose a personal relationship with a colleague.

Chicago-based exchange operator announced the news in a statement Tuesday’s announcement follows an investigation launched in late August that determined Tilly’s lack of transparency “violates CBOE policies and is in stark contrast to the company’s values.”

Fredric Tomczyk will succeed Tilly as CEO of Cboe. Tomczyk served as president and CEO of brokerage parent TD Ameritrade from 2008 to 2016 and has served on the company’s board of directors since 2019.

William Farrow III, lead director of CBOE’s board of directors, has been named non-executive chairman.

A veteran of the Chicago Board Options Exchange, Tilley was promoted from a clerk on the company’s trading floor in 1987 to CEO in 2013. Under his leadership, the company’s stock more than tripled.

Cboe said Tilly’s actions and subsequent departure will not impact the company’s strategy, financial performance or operations.

It’s unclear whether the undisclosed relationships occurred while Tilley was chief executive or before he took the helm, or what triggered the internal investigation.

Cboe declined to comment for this story, and Tilly did not respond. of wealth Request for comment.

BP CEO’s equally shocking resignation

Tilly is the latest chief executive to be forced out over an undisclosed relationship – just last week, BP’s Bernard Rooney was fired under similar circumstances.

The oil giant’s chief executive disclosed “a small number of historical relationships” with colleagues before becoming chief executive in February 2020 in a May 2020 investigation that found no violations of company rules.

However, after further investigation following an anonymous tip, Rooney admitted he had not been fully transparent and resigned. BP is now reviewing all personal relationships between employees in a bid to root out “problematic” behaviour, According to the Guardian.

In many companies, executive relationships are not outright banned—despite being generally frowned upon—but they must be fully disclosed to the board of directors and human resources.

Earlier this year, CNN President Jeff Zucker resigned after similarly misleading the board about his relationship with a staffer.

“As part of the investigation into Chris Cuomo’s tenure at CNN, I was asked whether one of my closest colleagues, with whom I have worked for more than 20 years, existed,” Zucker told employees in a memo. Consensual relationship.” “I acknowledge that the relationship has developed in recent years. I was asked to disclose it when the matter began, but I did not. I was wrong. Therefore, I resigned today.”

Zucker didn’t name his co-worker, but the romance was confirmed in a separate statement by the company’s chief marketing officer and senior vice president of communications, Allison Gollest, in which she similarly described their relationship How to “evolve” during the pandemic.

“I regret that we didn’t disclose this at the right time,” she echoed.

Employer-employee relationships are becoming increasingly unpopular

Some companies go a step further and ban relationships between managers and their subordinates entirely to avoid any risk of abuse of power: Take McDonald’s: The food giant’s CEO Steve Easterbrook said in 2019 was fired for entering into a consensual relationship with an employee, violating the company’s fraternity policy.

What’s more, it was revealed earlier this year that Easterbrook had been slapped with a fine by regulator U.S. Securities and Exchange Commission for covering up other inappropriate relationships with employees and “making false and misleading statements to investors about the circumstances leading up to the incident.” Commission (SEC) imposed a fine of $400,000. Terminate his duties”.

Research shows the number of CEOs being ousted is increasing as the #metoo movement affects the standards we hold leaders in the corporate world.

Exchange.com has been tracking CEO departures at companies in the Russell 3000 stock index since early 2017, and the data shows that misconduct-related departures are rare but on the rise. Meanwhile, half of the CEOs of the 3,000 largest U.S. companies were forced out last year due to personal misconduct, up from 14% in 2017, according to The Conference Board.

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