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New ASX chief executive to remain on Tabcorp board

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ASX Ltd, the listed owner of the Australian Securities Exchange, has appointed the head of Tabcorp to replace chief executive Robert Elstone.

Mr Elstone steps down from the top job after five years on October 10 and will be replaced by Elmer Funke Kupper .

ASX on Friday said Mr Funke Kupper, who has been Tabcorp’s managing director since February 2006, will start his new role on October 6.

Before that he was a senior executive at ANZ Bank.

The changeover comes ahead of the launch of rival bourse Chi-X Australia and after the Federal Treasurer Wayne Swan earlier this year knocked by plans by ASX to merge with the Singapore stock exchange.

ASX was now facing significant and complex changes to the regulatory and competitive environment, Mr Funke Kupper said in a statement on Friday.

It was too early to speculate on ASX’s plans for consolidation following its failed attempt to merge with the Singapore exchange, he said.

“It has put itself in a good position to compete effectively and to continue to grow,” he said in the statement.

ASX chairman David Gonski said Mr Funke Kupper had extensive experience in the financial services industry, which was relevant for his appointment to the ASX.

Mr Gonksi also said Mr Funke Kupper had a capacity for hard work and people skills.

Mr Elstone oversaw the merger in 2006 of the ASX and SFE Corporation – the body that owned and ran the Sydney Futures Exchange.

He was chief executive of the SFE before taking the top job at the ASX.

Mr Gonski said Mr Funke Kupper remaining a board director of Tabcorp would not cause a conflict of interest.

ASX’s board will amend its charter so that Mr Funke Kupper can be exempt from a provision that prevents its managing director from sitting on other company boards.

“I’m a strong believer that CEO’s should have other involvements and there are now many, many CEOs that do,” Mr Gonski said.

“Often if (a CEO) is on another board they can see much wider than the focus of what they’re on about, which allows them, in my view, to focus better.”

At 1530 AEST, ASX shares were up 12 cents at $29.39.