Any changes are likely to raise questions about the future of board members, including the current FD.
Deutsche Borse and Euronext, based in Germany and the Netherlands respectively, both have a two-tiered board structure. Non-executives sit on a supervisory board, while directors sit on an executive or managing board. The LSE currently has one board consisting of three executive directors and six non-executives.
‘It is going to be very interesting to see how the boards will be incorporated if a bid is successful,’ said one City fund manager.
Integrating the boards in the event of a deal going ahead could see a scrap for board places develop, with the battle for the financial directorship being one of the most intriguing.
If an acquisition goes ahead, the contest for the FD role should be between the LSE’s director of finance Jonathan Howell (pictured) and either Mathias Hlubek at Deutsche Borse or Serge Harry at Euronext. An outsider could also come into the mix.
The LSE board is likely to stay in place in the event of a buy-out but will probably take a subsidiary role to the board of its suitor. In this scenario, it is unclear what its role will be and whether it will still appoint an FD.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements