The board of the market operator Nasdaq OMX Group has cut the 2012 bonus of Robert Greifeld, the company's chief executive, by 62 per cent, as a result of the botched Facebook initial public offering last May.
Over all, Greifeld earned $8.9 million last year, including salary, stock awards and a "non-equity incentive plan compensation" of $1.35 million, down from a 2011 bonus of $3.59 million. In 2011, he received $7.6 million in total compensation.
The board also reduced the bonus of Anna Ewing, executive vice-president of global technology solutions, the company's top market technology executive, by 53 per cent, to $574,125.
In a securities filing on Thursday, the company said that the management compensation committee and the board "explicitly considered the Facebook IPO in connection with their review and determination of these reduced payouts". The trading debut of Facebook shares on May 18, 2012, was the most anticipated market event in more than a decade, generating intense interest among retail investors as well as on Wall Street. But the start of trading was marred by what Nasdaq calls "systems issues," including a surprising opening delay and missing trade execution messages. Amid the chaos of the day, the electronic market had to fill out orders by hand for a spell.
2013 The New York Times News Service