Interactive Brokers CEO Milan Galik earns $10.1M in 2020
Electronic trading major Interactive Brokers Group, Inc (NASDAQ:IBKR) invites its shareholders to attend the 2021 Annual Meeting of Stockholders. The agenda for the meeting, to be held on April 22, 2021 at 9:30 a.m. Eastern Time, includes an advisory vote on the compensation of executives for 2020.
Historically Thomas Peterffy, as Chairman of our Compensation Committee, has ultimately determined compensation for all employees. With the Compensation Committee, Mr Peterffy has traditionally set his own compensation as salary, capped at 0.2% of IBG LLC’s net income.
During 2020, Mr Peterffy was paid a salary of $640,000 by IBG LLC and no bonus, in accordance with historical practices. Beginning July 1, 2020, his salary was set at an annual rate of $480,000, in alignment with the other executive officers. During 2021, Mr Peterffy will be paid a salary of $500,000 by IBG LLC.
Earl H. Nemser’s compensation has historically included significantly lower overall compensation than the other executive officers, because Mr Nemser works less than full-time with Interactive Brokers, but his compensation has been mainly in salary, cash bonus, and a relatively small long-term incentive award under the Stock Incentive Plan. During 2020, M. Nemser was paid a salary of $540,000 by IBG LLC (inclusive of $90,000 of IBG LLC director fees) and a bonus of $700,000 in accordance with these practices. He also received an award under the Stock Incentive Plan valued at $820,000 for the year ended December 31, 2020.
During 2021, Mr Nemser will be paid a salary of $750,000 by IBG LLC (inclusive of $270,000 of IBG LLC director fees).
Messrs. Milan Galik and Paul J. Brody and Dr. Thomas A. J. Frank, the Company’s Executive Vice President and Chief Information Officer, have historically been compensated with a mixture of base salary, cash bonus, and stock awards under the Stock Incentive Plan.
Their 2020 base salary was $480,000 and each received an individual performance-based bonus. In addition to performance evaluations, consideration was given to the benefits derived from each individual’s existing ownership of membership interests in Holdings. Messrs. Galik and Brody and Dr. Frank received stock awards under the Stock Incentive Plan valued at $6,500,000, $2,670,000, and $1,000,000, respectively, for the year ended December 31, 2020.
This takes the total compensation of Mr Galik, Interactive Brokers’ CEO, to $10.1 million.
This advisory vote on the compensation of Interactive Brokers executive officers is not binding on the Board or the Compensation Committee. However, the Board and the Compensation Committee will review and consider the outcome of this advisory vote when making future compensation decisions for the executive officers. The Board recommends a vote FOR the compensation of Interactive Brokers’ executive officers.