Interactive Brokers stockholders approve exec compensation
Electronic trading major Interactive Brokers Group, Inc (NASDAQ:IBKR) has posted the results of the annual general meeting held earlier this week. As FX News Group has reported, the AGM agenda included an advisory vote on the compensation of executives for 2020.
Interactive Brokers announces that its stockholders approved, on an advisory non-binding basis, executive compensation levels, by a vote of 358,417,114 for; 28,433,525 against; 67,774 abstentions; and 21,351,590 broker non-votes.
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.
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 review and consider the outcome of this advisory vote when making future compensation decisions for the executive officers.
All nominees for election to the Board were elected for a one-year term expiring at the annual meeting of stockholders in the following year. Each director will hold office until his successor has been elected and qualified or until the director’s earlier resignation or removal.