Jefferies Financial Group seeks advisory vote on exec compensation

Maria Nikolova

As it pertains to cash bonus compensation, the Compensation Committee has decided to pay each of Jefferies’ executives $3.25 million for 2019.

Jefferies Financial Group Inc (NYSE:JEF), formerly known as Leucadia National Corporation, is inviting its shareholders to attend an annual meeting which will see, inter alia, the executive pay put to advisory vote.

The 2020 Annual Meeting of Shareholders will take place on Friday, April 17, 2020 at 10:00 a.m. New York City time at the Paley Center for Media, 25 West 52nd Street, New York City. The agenda will include a vote for the election of directors, an advisory vote to approve Jefferies’ 2019 executive compensation and a vote on the selection of its independent auditors.

As reported in last year’s proxy statement, between 2018 and early 2019 the Compensation Committee made a series of changes to Jefferies Financial Group’s executive compensation plan in direct response to feedback from shareholders.

Based on the Compensation Committee’s changes to the plan, there were substantial decreases in stated compensation targets (28% decrease on cash compensation target and 10% reduction in total incentive compensation), and increased performance thresholds and targets resulted in implied decreases in incentive compensation of 17%.

Due to those changes and the long-term performance nature of the plan, Jefferies Financial Group notes that its executives remain at risk of losing their long-term equity grants for compensation year 2019.

As it pertains to cash bonus compensation, the Compensation Committee has decided to pay each of Jefferies Financial Group’s executives $3.25 million for compensation year 2019 based on strong business and strategic results. The executives also earned a performance-based long-term incentive bonus of $4.5 million relating to compensation year 2018 because compounded ROTDE for the two-year period 2018 through 2019 was 12.03%.

The Group explains that its CEO (Rich Handler) and President (Brian Friedman), who together own approximately 8.6% of its outstanding shares, are financially and strategically aligned with the shareholders. The Group wants to be certain that the executives will continue to strike the proper balance between short-term performance and the ultimate objective: long-term value creation.

The goal is also to find the best way to retain and motivate the executives while taking into account the views of fellow shareholders, as well as the responsibilities as stewards of Jefferies.

“Our philosophy was, is and will remain simple: We want to pay our executives fairly relative to our performance as compared with their peers, but only if they generate meaningful long-term growth in our value”, the Group says.

Read this next

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

Digital Assets

Hidden Road adds OKX’s Nitro Spreads into prime brokerage

“Hidden Road continually seeks to increase market access and capital efficiency through expanded prime brokerage offerings. Integrating OKX’s Nitro Spreads product builds upon this philosophy by extending our counterparties’ ability to execute risk-managed arbitrage strategies.”