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FXCM Seniors Sign Revised Founder Severance Agreement - Thus Providing a Layer of Safety
FXCM Seniors Sign Revised Founder Severance Agreement - Thus Providing a Layer of Safety
Tuesday,17/03/2015|18:32GMTby
Adil Siddiqui
Senior executives at listed currency and CFD broker, FXCM, have signed an amended agreement that protects them in case their employment is terminated, with the four receiving a set remuneration in reference to their salary and bonus.
Four members of FXCM's board, and founding directors have engaged in an 'Amended and Restated Severance Agreement for Founders', as reported by FXCM. Under the revised terms, the four will benefit from receiving a compensation package that includes; two-times their salary and their target bonus, incase their employment is terminated by the company. The move highlights the on-going after effects of the Swiss Franc debacle which have had on the broking sector with a number of changes at the broker and banking level.
The four, founder-directors, Drew Niv, David Sakhai, William Adhout and Eduard Yusupov entered the agreement which offers additional protection incase either of the individuals are terminated from their role at the broker.
The 'Founders Severance Agreement' is a legally binding contract that protects certain members of the board in an event that difficulties arise, and their employment contract is terminated. In addition, the board of directors at the US-based organisation approved a salary increase for one of their C-level executives. Robert Lande, the Chief Financial Officer of the Company received a pay rise. The company’s board sanctioned an increase in Mr Lande's base salary from $480,000 to $600,000, effective as of March 15, 2015.
Both agreements were made on the 11th of March 2015, according to the filing. The COO has also been included in an agreement that offers protection incase his contract is terminated. Under the 'Selected Executives Severance Payment', FXCM, will provide Mr Lande with an aggregate amount equal to his annual base salary on March 31, 2015, plus his target annual bonus.
How the Bonus Will be Paid?
Furthermore, FXCM’s filing, outlines the way the named executives can receive their bonus. The information comes in light of the firm’s lending agreement with Leucadia after the firm suffered substantial losses on the 15th of January after the Swiss Franc tumbled against the Euro.
Details outlined in the filing show a tiered system for the bonus to be paid, with different breakdowns over the next few years, between 2015-2017. Overall, executives will only be entitled to the bonus amount if the firm meets specific targets assigned by Leucadia, and the amount which is proportionate to the target, in the notification the firm has specified a value relating to the 2016 EBITDA target.
According to official filings, the broker dealer’s executives have previously signed the agreements: “Severance Protection Agreement between Dror (Drew) Niv and FXCM Holdings, LLC, dated as of December 1, 2010 (incorporated by reference to Exhibit 10.8 to Current Report on Form 8-K filed by FXCM Inc. on December 7, 2010 (File No. 001-34986)) and Severance Protection Agreement between David Sakhai and FXCM Holdings, LLC, dated as of December 1, 2010 (incorporated by reference to Exhibit 10.9 to Current Report on Form 8-K filed by FXCM Inc. on December 7, 2010 (File No. 001-34986)).”
Four members of FXCM's board, and founding directors have engaged in an 'Amended and Restated Severance Agreement for Founders', as reported by FXCM. Under the revised terms, the four will benefit from receiving a compensation package that includes; two-times their salary and their target bonus, incase their employment is terminated by the company. The move highlights the on-going after effects of the Swiss Franc debacle which have had on the broking sector with a number of changes at the broker and banking level.
The four, founder-directors, Drew Niv, David Sakhai, William Adhout and Eduard Yusupov entered the agreement which offers additional protection incase either of the individuals are terminated from their role at the broker.
The 'Founders Severance Agreement' is a legally binding contract that protects certain members of the board in an event that difficulties arise, and their employment contract is terminated. In addition, the board of directors at the US-based organisation approved a salary increase for one of their C-level executives. Robert Lande, the Chief Financial Officer of the Company received a pay rise. The company’s board sanctioned an increase in Mr Lande's base salary from $480,000 to $600,000, effective as of March 15, 2015.
Both agreements were made on the 11th of March 2015, according to the filing. The COO has also been included in an agreement that offers protection incase his contract is terminated. Under the 'Selected Executives Severance Payment', FXCM, will provide Mr Lande with an aggregate amount equal to his annual base salary on March 31, 2015, plus his target annual bonus.
How the Bonus Will be Paid?
Furthermore, FXCM’s filing, outlines the way the named executives can receive their bonus. The information comes in light of the firm’s lending agreement with Leucadia after the firm suffered substantial losses on the 15th of January after the Swiss Franc tumbled against the Euro.
Details outlined in the filing show a tiered system for the bonus to be paid, with different breakdowns over the next few years, between 2015-2017. Overall, executives will only be entitled to the bonus amount if the firm meets specific targets assigned by Leucadia, and the amount which is proportionate to the target, in the notification the firm has specified a value relating to the 2016 EBITDA target.
According to official filings, the broker dealer’s executives have previously signed the agreements: “Severance Protection Agreement between Dror (Drew) Niv and FXCM Holdings, LLC, dated as of December 1, 2010 (incorporated by reference to Exhibit 10.8 to Current Report on Form 8-K filed by FXCM Inc. on December 7, 2010 (File No. 001-34986)) and Severance Protection Agreement between David Sakhai and FXCM Holdings, LLC, dated as of December 1, 2010 (incorporated by reference to Exhibit 10.9 to Current Report on Form 8-K filed by FXCM Inc. on December 7, 2010 (File No. 001-34986)).”
