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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
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- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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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.