Handler Forfeits Leucadia Shares After Jefferies Misses Targetsby
Forfeited shares are valued at $4.9 million, company says
Friedman, Handler still get $6 million Leucadia bonuses
Richard Handler, the chief executive officer of Leucadia National Corp., surrendered shares in the company after the Jefferies Group investment-banking subsidiary failed to meet targets.
Handler, 54, and President Brian Friedman, 60, forfeited almost 295,000 shares, valued at $4.9 million based on Thursday’s stock price, the New York-based company said in a regulatory filing Friday.
Net income at Jefferies fell 38 percent to $98.1 million in the fiscal year ended Nov. 30 amid a slump in bond-trading revenue and losses tied to energy bets. That helped push Leucadia stock down 22 percent last year after a 21 percent slide in 2014. The shares dropped another 5.1 percent this month through Thursday.
“Jefferies’ fiscal 2015 results fell below the required threshold amounts for any bonus payment and also resulted in Messrs. Handler and Friedman forfeiting 294,978 Leucadia shares,” according to the filing. Richard Khaleel, a spokesman for the company, had no immediate comment.
Handler and Friedman each received bonuses of $6 million, based solely on Leucadia’s performance in 2015. That’s better than a year earlier when they turned down cash awards after each being entitled to about $2.2 million apiece for their work in 2014.
Leucadia, which also has a beef-processing business, a commercial mortgage venture with Warren Buffett’s Berkshire Hathaway Inc. and an investment in HRG Group Inc., posted net income available to common shareholders of $224 million in the first nine months of 2015, compared with about $214 million in the same period a year earlier.
Handler sold Jefferies to Leucadia in 2013 and then became CEO of the parent company. He remained CEO of the investment bank.