FXCM Slashes Targets Executives Must Hit to Collect Bonusesby
FXCM Inc., the currency-trading firm bailed out by Leucadia National Corp., cut by half the profit target its executives need to hit to collect bonuses.
The target for earnings before interest, taxes, depreciation and amortization was cut to $40 million from $80.5 million in the 2016 bonus plan, New York-based FXCM said in a regulatory filing after U.S. markets closed on Friday. Another metric, related to loans made to the firm by Leucadia, will no longer be considered in determining bonuses, according to the filing.
One half of the incentive compensation is now tied to EBITDA and the rest to "individual objectives and goals set for the participant," according to the filing.
FXCM, led by Chief Executive Officer Drew Niv, almost collapsed in January 2015 after a surge in the Swiss franc, prompting a bailout by Leucadia, the parent of investment bank Jefferies Group.
FXCM shares plunged 90 percent last year, when it implemented a 1-for-10 reverse stock split. The stock has tumbled an additional 34 percent this year, closing Friday at $11.04.