Feelers go out for Weldon’s replacement

NZX chief executive Mark Weldon says he has mixed emotions about leaving the firm after ten years at the helm.

The stock exchange operator announced this morning Mr Weldon will step down in the first half of next year.

“I think if I felt 100% comfortable and easy with it then I probably should have been gone a while ago,” Mr Weldon said, adding that it was a difficult decision for him to make.

“It was tempting to stick around for another couple of years and sit on the lazy boy but that’s not the right thing to do.

“It’s been ten years, the organisation is in great health. That was the basis on which I approached the chairman.”

Chairman Andrew Harmos noted that during Mr Weldon’s tenure the NZX had grown from a $15 million company to one with a market capitalisation of $288 million.

NZX Limited has diversified into several different revenue streams, reducing its reliance on listing revenue. Its new derivatives market has grown exponentially over the
past 12 months, while the Clearing House, Agri Information and Energy businesses were all functioning well, Mr Harmos said.

An international search was underway for a replacement chief executive.

Mr Weldon said he believed the capital markets were looking much healthier with several new listings, including potential partial state-owned asset sales are in the pipeline, and a new regulatory framework in place.

A partial float of TradeMe is particularly important, not just because it is a Kiwi icon but also because it’s being sold by a large overseas entity, he said.

He sees TradeMe as a possible pre-cursor to possibly some of the Australian-owned banks offering up shares and listing on the local bourse.Mr Harmos said the board had appointed recruitment firm Korn/Ferry to conduct an international search for a replacement chief executive.

“The board is very clear on the capability set that the successor needs to have and the nature of the role,” he said.“There’s no reason why that shouldn’t start today. But we’ve given ourselves a very generous period within which to do that.

“The way global markets are and the way this firm is now positioned this is a hugely attractive job for somebody and I would hope that we would prompt people in settled positions in the market here or people abroad.”

Mr Weldon was considered well remunerated, taking home $1.3 million last year and he also received a swag of NZX shares as part of a long term incentive plan.

In April he sold 2 million shares for $4.86 million. His company Lola Nominees still holds 6 million NZX shares with a further 907,082 shares still outstanding under the share plan.