Company shares fall 6% following news of intended departure.
UK data centre provider Telecity has revealed that its chief executive Michael Tobin, is to leave the company.
Tobin, who joined Telecity in 2004 and oversaw its growth to a value of around £1.6bn, said in a statement to the London Stock Exchange that it was "time to move on" and he would be leaving the company on October 31.
"The board and I agree that with the business in excellent health now is the time for me to move on to explore other important opportunities and to make way for a new chief executive to take the company to the next stage of its development," he wrote.
Shares in the FTSE 250 company fell as much as 6% in early trading following the news.
Telecity, which provides carrier-neutral datacentre and colocation centre facilities across Europe, said it would be starting the hunt for his successor immediately, with company chairman John Hughes taking charge until a replacement was found.
Tobin will enjoy a lucrative payoff upon leaving Telecity, including a £753,000 "termination payment", along with a maximum of £45,000 of "outplacement counselling and assistance" - professional advice and help with finding a new job.
He will also receive £70,000 in compensation for "statutory claims arising from the termination of his employment", and £10,000 towards legal fees due to the "termination of his employment".
Tobin, who oversaw Telecity's stock market flotation in 2007 and owns a 0.3% stake in the company estimated to be worth around £5m, added: "I remain a significant shareholder of the business and look forward to watching TelecityGroup go from strength to strength."
Source: Company Press Release