LSE investors told by second advisory group to back chairman

A second influential advisory firm has come forward urging London Stock Exchange shareholdersnot to back aninvestor's bid to push the chairman out.
Glass Lewis has told its clients thatThe Children's Investment Fund (TCI), run by hedge fund billionaire Sir Christopher Hohn, had"failed to present asufficiently compelling case" to remove chairman Donald Brydon.
The recommendation comes as a fresh blow to Sir Christopher, who is seeking shareholder support at a crunch investor meeting which will decide Mr Brydon's fate on December 19.
Yesterday Institutional Shareholder Services (ISS)recommended that clients vote against Mr Brydon'sremoval and Glass Lewis has reinforced that message withits own clients.
Sir Christopher, whose hedge fund owns 5pc of the exchange, embarked on a highly-public campaign to oust Mr Brydon last monthafter growing convinced thatchief executive Xavier Rolet was forced to resign.
The bitter bust-up escalated to such an extent that Mr Rolet left last week, a year earlier than planned.
LSE investors told by second advisory group to back chairman

Xavier Roletinsisted last week that he would not return to the job 'under any circumstances'

Teri Pengilley
Glass Lewis saidforcing him to exit before his contract ends in 2019 would impairthe hunt for another chief executive, which is currently a key priority for the exchange.
"We see no reason to believe that the board failed to properly oversee the company during the CEO transition process," Glass Lewis told clients. "The board appears to have exercised reasonable judgment in pursuing an orderly CEO succession plan."
LSE directors havealready branded Sir Christopher's campaign to keep Mr Rolet in the role and remove Mr Brydon as "damaging" to the exchange, urging the activist investor to backdown. WhileSir Christopher pulled a vote to retain Mr Rolet, who resigned in October,he has insisted on Mr Brydon's removal.
However, to succeed in his fight to oust the chairman, he will need more than half of the investors who vote on December 19to back his exit.
Separately, accounts filed on Thursday show that TCI Fund Management paidout $364m in dividends to two directors Sir Christopher and compliance chief AngusMilnein the year to February.
Although the split is not broken down it is understoodalmost all of themoney went to Sir Christopher, one sourcetold Bloomberg, translatingto a salary for the billionaireof almost $1m a day. The directors did not receivea dividend the year before.
Pre-tax profits during the period more than doubled to$273.3m, meanwhile going in the opposite direction to profits in TCI's advisory business which halved during the year. TCI Fund Holdings, the group's holding company, also saw its pre-tax profits soar although it paid out $54.4m to key management staff versus $231.5m a year earlier.
A spokesman for TCI declined to comment.
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