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."
