ICAP Plc, the world’s largest broker of transactions between banks, cut Chief Executive Officer Michael Spencer’s annual bonus by 29 percent as profit fell.
Spencer, 58, earned 2.78 million pounds ($4.3 million) in bonus for the year ended March 31, London-based ICAP said in its annual report published today. That compares with 3.9 million pounds a year earlier. His total compensation declined to 4.2 million pounds from 5.51 million pounds.
The “difficult trading conditions during the year have produced a lower financial outcome,” resulting a reduction in the bonus pool for the three executive directors from the previous year, ICAP said. The other two executive directors were Iain Torrens and John Nixon.
ICAP’s pretax profit before exceptional items in the year through March fell 20 percent to 284 million pounds as a slowing economy and low interest rates crimped trading between firms.
Interdealer brokers such as ICAP act as a go-between for banks that trade bonds, stocks, currencies, energy and derivatives. They profit when prices fluctuate because more traders use the products they trade.