FXCM ties 50% of senior management bonuses to repaying Leucadia loan in 2017


drew niv fxcm

Retail Forex broker FXCM Inc (NASDAQ:FXCM) has released details of its 2017 executive compensation plan, and it seems that it is placing a large premium on repaying in full its loan from Leucadia National Corp (NYSE:LUK).

fxcm-blue-logoOn November 7, FXCM’s Board of Directors approved the company’s 2017 Incentive Bonus Plan for Founder-Directors and Specified Executive Officers for the fiscal year 2017 (the “2017 Incentive Bonus Plan. The 2017 Incentive Bonus Plan provides certain key employees of the company with additional incentives through the payment of bonuses based on the profitability of the company and reduction of company debt.

Pursuant to the 2017 Incentive Bonus Plan, participants – including Drew Niv, David Sakhai, William Ahdout, Eduard Yusupov, and Kenneth Grossman – are entitled to receive a bonus based on a target amount equal to 200% of such participant’s base salary fiscal year 2017.

For the year ending December 31, 2017, the Target Bonus will be calculated as follows:

(a) 50% of the Target Bonus will be earned if prior to December 31, 2017, the Company repays in full the company’s loan from Leucadia, and

(b) up to a maximum of 50% of the Target Bonus will be earned if FXCM Group LLC is certified to have achieved certain adjusted EBITDA (as described in the plan document) targets for 2017 as follows:

  • 25% of the Target Bonus will be earned if FXCM Group LLC is certified to have achieved adjusted EBITDA of $64 million for fiscal year 2017;
  • 50% of the Target Bonus will be earned if FXCM Group LLC is certified to have achieved adjusted EBITDA of equal to or greater than $92 million for fiscal year 2017.

If FXCM Group LLC is certified to have achieved adjusted EBITDA of between $64 million and $92 million for fiscal year 2017 then the Target Bonus earned by each participant shall be between 25% and 50% of the Target Bonus calculated using a straight line interpolation.

None of the Target Bonus will be earned if the FXCM Group LLC is certified to have achieved adjusted EBITDA of less than $64 million for fiscal year 2017.

Unless otherwise determined by the administrator, payment of bonus amounts under the 2017 Incentive Bonus Plan is subject to continued employment by the company on the last day of the plan year (or as otherwise provided in the plan document). All payments under the 2017 Incentive Bonus Plan will be made in cash, unless otherwise determined by the administrator of the 2017 Incentive Bonus Plan.

The full FXCM filing regarding executive bonuses can be seen here.

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FXCM ties 50% of senior management bonuses to repaying Leucadia loan in 2017

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