Edward Tilly has resigned as chairman and CEO of Cboe Global Markets after the conclusion of an internal investigation of personal relationships with colleagues that the board launched in August alongside an independent counsel.
"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 company said in a Sept. 19 release. "The conduct was not related to and does not impact the company's strategy, financial performance, technology and market operations, reporting, or internal controls."
Named to succeed Tilly as CEO of the Chicago-based options trading house is Fredric Tomczyk, 68, a Cboe board member since 2019 who was president and CEO of TD Ameritrade from 2008 until 2016.
William Farrow takes the role of nonexecutive chairman of the board. Farrow is best known for running Chicago-based Urban Partnership Bank, the successor to failed ShoreBank, from 2010 to 2018. Before that, he worked six years as chief information officer for the Chicago Board of Trade.
"Fred's familiarity with Cboe's business, combined with his multidecade 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," Farrow said in the release. "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."
Tilly had run Cboe for a decade. He embarked on an acquisitive strategy that has extended the exchange's global reach, pushing into foreign markets. In more recent years, he saw opportunity in the growth of bitcoin and other cryptocurrencies and has invested heavily in an exchange dedicated to derivatives tied to virtual currencies.
Tilly's resignation is being treated as a termination "without good reason," as his employment agreement defines that, according to an SEC filing. He will receive no severance. Tilly will get his prorated salary through Sept. 18, his resignation date. He will be entitled to time- and performance-based stock awards through his departure date and forfeit the remainder.
Tomczyk will earn a base salary of $1 million, and his target bonus will be 165% of his base salary. He receives an equity incentive award valued at a little over $7.1 million, which vests over time.
