Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Knight Capital Group Inc.    

SummaryNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Knight Capital Group Loses Shareholder Vote On Pay

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/09/2012 | 11:56pm CEST

--Shareholders defeat advisory vote on executive pay at Knight

--CEO pledges to work with stockholders on compensation structure

--ISS, Glass Lewis highlighted compensation as a concern

(Adds comments from CEO, detail on proxy-advisor recommendations, other information, in the first, third and seventh through 12th paragraphs.)

 
   By Jacob Bunge 
   Of  
 

Knight Capital Group Inc. (>> Knight Capital Group Inc.) shareholders on Wednesday voted against the executive pay structure at the U.S. brokerage and trading company's annual shareholder meeting, adding to a rash of investor rebukes to companies over compensation.

Shareholders voted down an advisory vote on Knight's executive-compensation plan by a margin of about 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. He pledged to work with stockholders to "clarify and enhance" Knight's pay structure.

The result extended a string of defeats handed to management teams by investors this year in votes around pay. Last month, Citigroup Inc. (C) investors rejected the banking company's executive-pay proposal, and the chief executive of insurer Aviva PLC (AV, AV.LN) resigned this week after shareholders challenged his compensation.

Last week saw executive departures following similar votes at two other U.K. companies, drug maker AstraZeneca PLC (AZN, AZN.LN) and Trinity Mirror PLC (TNMRY, TNI.LN), a diversified media group.

Knight CEO 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 the advisory firm determined weren't linked closely enough to company performance. ISS told clients in a research note that Knight's executive pay lagged shareholder returns relative to peers, and that Joyce's pay last year was 2.5 times the median of its peer group.

That peer group changed last year in ISS's analysis of Knight. In its April report on Knight, the company was measured against more bank-holding companies and real- estate investment vehicles such as Apartment Investment and Management Co. (AIV), Glacier Bancorp Inc. (GBCI) and Park National Corp. (PRK).

Other financial-services companies previously included in Knight's peer group, such as SWS Group Inc. (SWS) and Janus Capital Group Inc. (JNS), were no longer included in ISS's comparison.

Last year, two senior Knight employees also collected restricted-stock awards that boosted their overall pay.

In its 2011 report on the company, ISS rated compensation at Knight a "medium" concern, versus a "high concern" in a report issued last month.

Shares in Knight settled 1.4% higher at $13.07. The stock has risen about 2.7% over the past 12 months, versus a 1% rise in the Standard & Poor's 500 stock index.

The Jersey City, N.J., company is one of the heaviest traders of stocks in the U.S., makes markets in a variety of securities and financial instruments, and offers a range of tools to help clients manage their dealings in financial markets.

Last year, Knight disclosed a restructuring during 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; @jacobbunge

Stocks mentioned in the article : Knight Capital Group Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KNIGHT CAPITAL GROUP INC.
07/26 KCG : Pre-Market Technical Recap on Investment Brokerage Stocks -- Charles Schwa..
07/24 VIRTU KCG HOLDINGS LLC : Entry into a Material Definitive Agreement, Creation of..
07/21 VIRTU FINANCIAL : Completes Acquisition of KCG Holdings, Inc.
07/20 VIRTU KCG HOLDINGS LLC : Termination of a Material Definitive Agreement, Complet..
07/19 KCG HOLDINGS, INC. (NYSE : KCG) Files An 8-K Regulation FD Disclosure
07/19 KCG HOLDINGS, INC. : Regulation FD Disclosure (form 8-K)
07/17 KCG : Releases june 2017 trade volumes
07/12 Pinnacle West Capital Corporation (PNW) Shares Bought by Bank of America Corp..
07/06 KCG HOLDINGS, INC. (NYSE : KCG) Files An 8-K Other Events
07/05 KCG HOLDINGS, INC. : Other Events (form 8-K)
More news
Financials ($)
Income Statement Evolution
Consensus
 
Mean consensus
Number of Analysts
Average target price -
Spread / Average Target
EPS Revisions
Managers
NameTitle
Douglas A. Cifu Chief Executive Officer & Director
Joseph Molluso Chief Financial Officer & Treasurer
Sophie Sohn Chief Communications & Marketing Officer
Justin Waldie Secretary, Senior Vice President & General Counsel
John DiBacco Global Head-Equities Trading
Sector and Competitors
1st jan.Capitalization (M$)
KNIGHT CAPITAL GROUP INC.0
GOLDMAN SACHS GROUP-4.95%87 283
MORGAN STANLEY8.90%84 501
CHARLES SCHWAB CORP3.70%54 556
CITIC SECURITIES CO LTD5.98%29 854
NOMURA HOLDINGS INC-6.28%22 449