Knight Capital Group Loses Shareholder Vote On Pay
May 09 2012 - 2:47PM
Dow Jones News
Knight Capital Group Inc. (KCG) shareholders on Wednesday voted
against the executive pay structure at the U.S. brokerage and
trading firm's annual shareholder meeting.
Shareholders voted down an advisory vote on Knight's executive
compensation by a margin of around 2 to 1. Proxy advisory firms
Glass Lewis & Co. LLC and Institutional Shareholder Services
Inc. had recommended voting against the pay plan.
"Knight's board and management take seriously the design of
compensation policies and procedures," said Knight Chief Executive
Tom Joyce, speaking to shareholders after the vote.
Joyce's compensation last year totaled about $6.4 million, up
from $6.2 million in 2010, according to a report from ISS.
Glass Lewis objected to the CEO's annual guaranteed bonus of $3
million and other bonus payments that were not linked closely
enough to company performance.
The result extended a string of defeats handed to management
teams by investors this year in votes around pay. Citigroup Inc.
(C) investors last month rejected the banking firm's executive pay
proposal, and the chief executive of insurer Aviva PLC (AV, AV.LN)
resigned this week after shareholders challenged his compensation,
following similar departures at two other U.K. companies, drugmaker
AstraZeneca PLC (AZN, AZN.LN) and Trinity Mirror PLC (TNMRY,
TNI.LN), a diversified media group.
Shares in Knight were recently up 1.7% at $13.11. The company
makes markets in a variety of securities and financial instruments,
and manages clients' trading.
The Jersey City, N.J., company announced a restructuring last
year following a three-year decline in stock trading activity that
has also weighed on Wall Street banks and exchanges.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com; Twitter: @jacobbunge
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