Chicago Board Options Exchange CEO resigns after failing to disclose personal relationships with colleagues

Edward Tilly is out at Cboe following probe

Cboe Global Markets Chairman and CEO Edward Tilly has resigned from the company after an investigation found he failed to disclose personal relationships with colleagues, the options exchange announced Tuesday.

Tilly's abrupt departure came after the conclusion of a probe Cboe's board of directors launched last month with the assistance of outside independent council, the company said. 

His failure to disclose the relationships "violated Cboe's policies and stands in stark contrast to the company's values," Cboe said in a press release.

Former CBOE CEO Edward Tilly

Edward Tilly, chairman and CEO of Cboe Global Markets, Inc., speaks during the Piper Sandler Global Exchange and FinTech Conference in New York City June 8, 2023. Tilly resigned unexpectedly Tuesday after a company probe found he failed to disclose p (REUTERS/Brendan McDermid/File Photo / Reuters Photos)

Current Cboe board member and former TD Ameritrade President and CEO Fredric Tomczyk has replaced Tilly as chief executive effective immediately, and lead director William Farrow is now serving as non-executive chairman.

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"Cboe strives to uphold the highest ethical standards across the organization and fully investigates and takes appropriate action when it determines that any of its policies have been violated," Farrow said in a statement. "Fred's familiarity with Cboe's business, combined with his multi-decade 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."

Cboe logo on smartphone

Fredic Tomczyk is now CEO of Cboe after the departure of Edward Tilly, and William Farrow has been named non-executive chairman of the board. (Igor Golovniov/SOPA Images/LightRocket via Getty Images / Getty Images)

Tilly began his career at Cboe in 1987 as a trading floor clerk, rising through the ranks to become CEO in 2013. His biography page has been removed from the Cboe website, and he could not immediately be reached for comment.

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Tilly's surprise departure comes one week after Bernard Looney resigned as CEO of BP in similar fashion for the same reason after the British energy giant discovered Looney did not fully disclose all personal relationships he had with colleagues.

Ticker Security Last Change Change %
CBOE CBOE GLOBAL MARKETS INC. 167.60 -1.11 -0.66%

Cboe Global Markets, Inc.

Leaders failing to disclose personal relationships with colleagues or even engaging in them at all is a deal-breaker for many companies.

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McDonald's ousted former CEO Steve Easterbrook in 2019 for engaging in a "consensual relationship with an employee," and former Intel CEO Brian Krzanich stepped down in 2018 after the semiconductor manufacturer found out he had a "past relationship with an Intel employee."

Reuters contributed to this report.