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Screenshot of a breaking news alert e-mail from Q2 2017
Fresh off a very negative Q3 financial report, retail forex broker Gain Capital Holdings Inc (NYSE:GCAP) is shaking up its management ranks.
Gain Capital has indicated in regulatory filings that COO Jeff Scott will be leaving his current position with the firm, in favor of heading the company’s not-yet-operating international money transfer business, Gain Capital Payments Ltd.
Scott has been COO of Gain Capital for more than five years.
We had reported back in February that Gain Capital Payments planned to launch its money transfer business at URL foreignexchange.com. The initial plan was to have foreignexchange.com operational (initially in the UK) at some point during Q2, but nearly halfway into Q4 the company’s website indicates that the company is still waiting to receive final approval from the relevant regulatory authorities.
According to the filings, Mr. Scott is entitled to receive an annual base salary of $250,000, as well as an incentive bonus of $100,000 for the period from January 1, 2016 to September 30, 2016. Mr. Scott is also eligible to receive a target discretionary incentive bonus of $150,000 for the performance period from October 1, 2016 through September 30, 2017, provided that his incentive bonus for the period shall generally not be less than $100,000.
If Mr. Scott’s employment is terminated by the Company other than for “Cause” or by Mr. Scott for “Good Reason,” each as defined in his employment agreement, the agreement provides for a severance payment of $350,000, payable in installments over a period of 12 months, as well as payment of the 2017 Bonus (if not already paid), the acceleration of certain equity grants and the continuation of health benefits for 18 months. If such termination occurs in connection with or within the 12-month period following a “Change in Control,” Mr. Scott will be entitled to receive the severance benefits described above, although the $350,000 severance payment shall be payable in a lump sum rather than in installments. Mr. Scott’s right to receive any severance payments under the agreement is generally conditioned upon his execution of a release in favor of the Company. The agreement also contains nondisclosure, noncompetition and nonsolicitation provisions.