Mr Sakhai will receive annual compensation of $600,000, and a bonus of $1 million at the end of his employment term as COO.
When FXCM exited the US retail Forex market following regulatory revelations in February this year, there was some “collateral damage”, as a raft of directors at FXCM’s US businesses had to bid goodbye to their registrations with the National Futures Association (NFA). Amid these were Eduard Yusupov and David Sakhai who both had their NFA registrations as principals of Forex Capital Markets LLC withdrawn on March 10, 2017.
This change, however, did not mark the end of the career path for Mr Yusupov and Mr Sakhai at FXCM, as shown by today’s regulatory filing by the company with the US Securities and Exchange Commission (SEC).
FXCM Group, an indirect subsidiary of Global Brokerage Inc (NASDAQ:GLBR), has just announced the sealing of employment agreements with Mr Yusupov and Mr Sakhai.
On May 17, 2017, FXCM Group agreed that Mr Yusupov will retain his role as Group’s Global Head of Dealing. He will receive annual compensation of $600,000 for these services.
FXCM Group’s current Chief Operating Officer David Sakhai will retain this full-time role until May 31, 2018. He will receive annual compensation of $600,000 and a bonus of $1 million at the end of the period. If Mr Sakhai’s employment is terminated by the company not for cause, then he will be entitled to receive his compensation through May 31, 2018 plus the full bonus, as well as $500,000.
In addition, beginning from June 1, 2018 and ending no later than May 31, 2022, Mr Sakhai will serve FXCM Group on a part-time basis as a consultant and advisor. During the Advisory Term, he will receive advisory payments of $125,000 per year. In case his employment is terminated by the company during the Advisory Term not for cause, he will be entitled to receive all of the advisory payments he would have otherwise received through May 31, 2022. The same is valid if a change of control of FXCM Group occurs before the completion of the Advisory Term.
Mr Sakhai and Mr Yusupov are currently amid the defendants in a class action securities lawsuit in the New York Southern District Court. The case, captioned Raul v. Sakhai et al (1:17-cv-02035), was filed by Jonathan Raul, represented by Joshua M. Lifshitz, Lifshitz & Miller, on March 21, 2017. The list of defendants includes 13 names, including Global Brokerage Inc, Dror Niv and Global Brokerage’s new CEO Kenneth Grossman.