FXCM Inc (NYSE:FXCM) has foreclosed on 1.2 million of Global Head of Dealing Eduard Yusupov’s units of FXCM Holdings LLC, as reported by a filing with the Securities and Exchange Commission (SEC) on January 23, 2015.
Mr. Yusupov had pledged 1,200,000 units of FXCM Holdings, LLC, at a current value of approximately $2.85 million, with a broker as collateral for a margin loan. Due to the events in the currency markets on January 15, 2015, the broker foreclosed on such units by exercising its right under the pledge agreement to cause the Reporting Person to exchange such units into shares of Class A Common Stock.
Prior to the events of January 15, this amount of stock would have had a significantly higher value, closer to $20 million.
As a result of this, all or a portion of such shares are intended to be sold to satisfy Mr. Yusupov’s obligations.
In November last year, Mr. Yusupov voluntarily relinquished $1.5 million in shares of the company.
Mr. Yusupov, who joined FXCM from MG Financial Group in 1999 in his current capacity and is one of the founding partners of the company, had in November sold 30,000 units of common stock at $16.07, a further 38,813 units at $16.30, and 24,931 units at $16.28, the valuations of which had at the time been publicized via the company’s mandatory filing with the US Securities and Exchange Commission.
In terms of the number of shares that Mr. Yusupov was able to liquidate, it is clear that he had taken a conservative approach, as he continued to own 4.9 million shares, amounting to an approximate total value of approximately $80 million.
Aside from the realisation of this asset and his substantial portfolio of FXCM stock which he retains, Mr. Yusupov’s 15 year tenure at FXCM has stood him as one of the higher earners in the industry, with an annual salary of $800,000 plus further remunerations amounting to a total calculated compensation of $1,469,044 per annum.