pounds 500,000 for sacked Exchange chief

Michael Lawrence, fired as chief executive of the London Stock Exchange in early January, agreed a payoff of just under pounds 500,000 yesterday, as an official inquiry into the Exchange looked set to turn into a public slanging match.

The pay-off was well below initial expectations, given the manner of his removal, sources said. Mr Lawrence had opened negotations for over pounds 1m in compensation for his dramatic removal from the pounds 342,000 a year post.

Refusing to comment yesterday on the details, Mr Lawrence said: "I do not see this as a pay-off for failure, but one for success."

Because of the abruptness of Mr Lawrence's dismissal, and the confirmation that it would result in no change of policy, the Exchange is believed to have feared it had a weak hand in the pay-off negotiations, and was expecting a settlement nearer pounds 700,000.

The Treasury select committee said yesterday it intends to recall John Kemp-Welch, chairman of the Stock Exchange, to answer questions about the widely different versions of events leading up to Mr Lawrence's dismissal.

Interviewed by MPs on Wednesday, Mr Lawrence had accused Mr Kemp-Welch of stabbing him in the back, after giving in to pressure from a cabal of powerful market making firms which had mounted a coup to wrest back control over the Exchange.

Mr Lawrence said he believed he had the full confidence of the Exchange's board, and that there was no warning of his sudden demise, engineered by a tiny fraction of the board's members.

Angered by these claims, it is believed that Mr Kemp-Welch will feel obliged to give more explicit details of the problems and difficulties associated with Mr Lawrence's management style.

In his first, highly fraught hearing before the Treasury select committee, Mr Kemp-Welch had told MPs that Mr Lawrence's departure had been preceded by a steady erosion of confidence in the chief executive's ability and his management style.

Sir Thomas Arnold, the Conservative chairman of the Treasury committee, said yesterday: "Michael Lawrence said some very strong things, and we feel Mr Kemp-Welch should be given the opportunity to respond." Referring to the different versions of events, Sir Thomas said: "So what is it all about? We need to know."

In their inquiry MPs have been focussing on the powers of the market- making firms, which dominate the current share trading system in London as middlemen by offering buy and sell prices. MPs' have questioned whether the privileges accorded these market makers are anti-competitive, and therefore whether the way the stock exchang is run, if the allegations of market making dominance are correct, is itself anti-competitive.

The committee said it intends to call the Treasury to give public evidence on the matter, and will ask the Office of Fair Trading whether - in the light of the controversy - it wants to look again at the activities of the market makers.

The OFT may also be asked to give public evidence. "The key question taking shape in my mind is whether issues of the way the exchange manages itself also raise questions of competition," said Sir Thomas.

"One lot of players say the decision making at the Exchange is flawed, and define those flaws, and another lot also says it is flawed, and defines the flaws completely differently. There is a lot to look at here."

voicesSiobhan Norton on why she eventually changed her mind
Life and Style
fashion Designs are part of feminist art project by a British student
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
Arts and Entertainment
Residents of Derby Road in Southampton oppose filming of Channel 4 documentary Immigration Street in their community
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
Scottish singer Susan Boyle will perform at the Commonwealth Games opening ceremony in Glasgow
commonwealth games
Lane Del Rey performing on the Pyramid Stage at Glastonbury 2014
people... but none of them helped me get a record deal, insists Lana Del Rey
Arts and Entertainment
Dwayne 'The Rock' Johnson stars in Hercules
filmReview: The Rock is a muscular Davy Crockett in this preposterous film, says Geoffrey Macnab
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Business Analyst - Banking - Scotland - £380-£480

£380 - £480 per day: Orgtel: Business Analyst - Banking - Edinburgh - £380 - ...

Day In a Page

Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

Michael Jamieson: Why weight of pressure rests easy on his shoulders

The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn