It seems that FXCM’s top executives are redrawing their contracts to make sure they are well compensated in the event that they are ousted or if the company is broken up.
The group’s Chief Operating Officer, David Sakhai, has extended his employment agreement with the company, for a compensation of $2.1 million, until May 2022, according to filings with the US Securities and Exchange Commission dated May 18.
David has signed amended contracts granting him a larger payout if his employment is terminated. More specifically, Mr. Sakhai will continue to serve as the group’s full-time COO until May 31, 2018. After this date and until May 2022, he will serve FXCM on a part-time basis providing consultation as requested from time to time by the board of directors.
As per the contract, David was offered a basic pay of $600,000 per annum and a bonus of $1 million upon completion of his employment term. But in case of being removed by the company, Mr. Sakhai would get his annual base salary ($600,000 per annum) plus his target annual bonus ($1,000,000), and an additional $500,000 for his advisory tasks.
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Mr. Sakhai has been the COO and director of FXCM Inc. since 1999 and is one of the original founding partners of the firm. He also serves on the board of directors of FXCM which also features Rich Handler, CEO of Leucadia, Brian Friedman, President of Leucadia, Robert Lande, Chief Financial Officer of Global Brokerage, Inc., and Kenneth Grossman, Managing Director of Global Brokerage, Inc.
Prior to founding FXCM, Mr. Sakhai worked in real estate management, holding several senior positions at Sak Brothers Realty.
Mr. Sakhai received his undergraduate degree from State University of New York at Binghamton.
In addition, the group announced that its current Global Head of Dealing, Eduard Yusupov, will continue to serve in the same position while receiving compensation of $600,000 per annum for his services.
The recent changes announced may reveal an elevated level of concern on the part of the firm’s current directors about their future involvement in the company. Earlier this week, FXCM Group promoted Brendan Callan as its newest CEO, nearly two months after he ascended to the role of interim CEO within the company. The appointment helps turn the page on setbacks earlier this year, as Callan will be the face of the group moving forward.