CBOE announces succession plan

CBOE Holdings announced today that long-time Chairman and CEO Bill Brodsky would be stepping down in May with current President and COO Ed Tilly being named the next CEO of CBOE.

Brodsky will remain at CBOE following the May 2013 transition as executive chairman for at least one year. In that role Brodsky said, “My main responsibility will be to lead the Board as it provides oversight, guidance and direction to management and to serve as a resource when needed or directed by Ed [Tilly].”

“Tilly said, “I am thrilled that Bill has agreed to stay on in a new role at CBOE. Bill is a rare combination of industry thought leader, investor advocate, regulatory expert and international advocate for CBOE and [equity] options [in general].”

Brodsky is expected to continue to lead the exchange’s outreach with regulators and Congress. “I am happy to stay as involved as Ed and the board want me to be,” Brodsky said.  “That is part of the plan. To provide good transition and real continuity of relationships and contacts we have nurtured over the years.”

Tilly added, “The structure is counting on the expertise that Bill has brought to the industry and CBOE.”

Tilly laid our four key strategic initiatives for CBOE as it moves forward. “They are delivering on our line of proprietary products, leveraging or customized trade technology, optimizing revenue in commoditized products and expanding our customer base,” Tilly said.

According to Brodsky, who has served as Chairman and CEO of CBOE for 16 years, the move is part of succession plan that was formulated following the completion of the 2010 initial public offering.

In a release, CBOE lead director noted, “The change in leadership at CBOE speaks to the depth of CBOE’s management, and is a natural progression in CBOE’s evolution. CBOE is fortunate that Bill has carefully laid the groundwork for a smooth succession of executive leadership.” 

Asked about accomplishments over his tenure, Brodsky highlighted options becoming a mainstream product, the move to electronic trading — which he described as a massive undertaking — creating the VIX as a major asset class, resolving the Chicago Board of Trade exercise right issue and executing the firm’s IPO. He noted, “Resolving the exercise right issue was the biggest bear, the IPO was easy compared to exercise rights.”

The company also announced that Chief Business Development Officer Edward Provost will succeed Tilly as CBOE President and COO.