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Stories of Interest
- North Korean caught secretly mining bitcoin rival
- IPO Timelines Cut by 80% After SEC's Private Filing Decision
- How the Carried Interest Break Survived the Tax Bill
- FINRA: The Neutral Corner
- Coinbasex Says Buying and Selling Temporarily Disabled Amid Price Rout
- Bitcoin plunges by more than a third in a single day
- Goldman Is Setting Up a Cryptocurrency Trading Desk
- Jefferies Lets Employees Choose When to Receive Their Bonuses
- UBS Told to Pay $903K After Losing Retaliation Verdict
- BEWARE: Long Island Iced Tea Shares Soar After Changing Name to Long Blockchain
- Gary Cohn’s Last Laugh: Cashing Out on Trump’s Tax Plan
- E*Trade Lets Customers Trade in CBOE Bitcoin Futures
- Swiss Find Serious Shortcomings at JPMorgan in 1MDB Case
- Washington-based Investment Adviser and His Business Partner Charged in Multi-Million Dollar Scheme
- FINRA Board of Governors Meeting
- Cryptocurrency Market Now Doing Same Daily Volume as the NYSE
- Jailed Barclays Trader Must Pay $400,000 From Libor Profits
- Trump Asks ‘How’s Your 401(k)?’ But Most Voters Don’t Have One
- A Bitcoin Hedge Fund’s Return: 25,004% (That Wasn’t a Typo)
- Madoff Victims Near Full Recovery of Principal With Payout
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NEWSLETTERS & ALERTS
Compensation for FINRA Top Executives
by Howard Haykin
With the release of FINRA's Annual Financial Report for 2016 and the Management Compensation Committee Report (page 27-28), gawkers and broker-dealer members alike can espy compensation payouts to the regulator's most senior executives. Depending on one's vantage point, it can either be a fascinating or a frustrating experience.
For 2016, FINRA's 11 most senior executives received over $14.5 million - this includes $2.5Mn for outgoing Chair and CEO Rick Ketchum. For 2015, that same figure was over $12.5 million.
Some interesting factoids:
- In 2015, Rick Ketchum took down $2.9 million, while SEC Chair Mary Jo White was paid $170,400. Ms. White was a government employee paid out of the U.S. Treasury.
In a curious coincidence, in 2005, NASD’s total expenses were $652.5Mn (of which $352.5Mn, or about 54%, represented compensation and benefits), while in 2015, that same exact figure - $652.5Mn – represented only the compensation and benefits portion of the total expenses. Total expenses in 2015 comes to $968.4Mn, so the amounts FINRA paid, and is paying, in comp and benefits has climbed to about 67% of FINRA’s overall expenses. Slicing this data a little differently: in a 10-year period, FINRA’s expenses climbed 48%, while the number of member firms it regulates dropped over 20%. Hmmm. - Alan Wolper for Ulmer Law's BDLawCorner.com.
- Direct Compensation includes Base Salaries and Incentive Compensation:
► Incentive compensation is an additional “at-risk” compensation that is performance-based and determined in relation to individual achievements and FINRA’s overall performance. Size of actual award varies based on goal achievement, performance, grade level and degree of responsibility within the organization.
Executive comp has moderated since former Chair & CEO was paid $2.9Mn in 2015 when FINRA had a <$39.5Mn> loss. Another CEO, Mary Schapiro was paid $7.3Mn in 2009, including deferred compensation, prior to her becoming Chair of the SECm, where she was paid a salary of $165,000.