Kenneth Grossman remains only officer on Global Brokerage’s payroll
“I am the only person on the Debtor’s payroll”, Kenneth Grossman says in a Declaration filed with the New York Southern Bankruptcy Court.
As reported earlier, Global Brokerage Inc (NASDAQ:GLBR) filed for Chapter 11 bankruptcy on December 11, 2017. FinanceFeeds has examined the documents filed by the company with the New York Southern Bankruptcy Court in the case captioned Global Brokerage, Inc. (1:17-bk-13532). The so-called “first day pleadings” include 14 documents, with the two vital ones being, of course, the Petition and the Chapter 11 Plan. However, since Global Brokerage had earlier indicated what the content of these documents would be, we were more curious to explore the Declaration made by Global Brokerage’s CEO Kenneth Grossman.
Mr Grossman is still Chief Executive Officer of Global Brokerage, Inc. (Debtor), a position he has held since May 2017. He is a founder of the Debtor and has more than 18 years of experience with the Debtor and its non-debtor Affiliates. He has been involved in all aspects of the Debtor’s reorganization process, including the development of the Debtor’s strategic business plan, negotiations of the Restructuring Support Agreement and the Debtor’s proposed plan of reorganization, and the internal restructuring negotiations between the Debtor and its non-debtor Affiliates.
In connection with his appointment as CEO, Global Brokerage and Mr Grossman entered into an employment agreement, dated as of May 15, 2017. The terms of the agreement provide that he will serve as CEO of Global Brokerage until no later than May 31, 2018, compensation of $600,000 per annum, and a bonus of $1,000,000 upon completion of the Grossman Employment Term.
This employment agreement was not negotiated in anticipation of a bankruptcy filing. Nor have any changes been made to this greement in anticipation of a bankruptcy filing.
Mr Grossman declares that he is the only person on the Debtor’s payroll. All other officers are paid by non-debtor Affiliates.
The other officers include Robert Lande, who serves as Chief Financial Officer; David Sakhai, who serves as Chief Operating Officer; Margaret Deverell, who serves as Senior Chief Accounting Officer; David Sassoon, who serves as Senior Vice President, General Counsel, and Secretary.
Let’s recall that on November 10, 2017, Global Brokerage announced that David Sakhai, Eduard Yusupov, Margaret Deverell, Robert Lande, and David S. Sassoon. In particular, David Sakhai and Eduard Yusupov will resign from their positions as members of the Board of Global Brokerage. Margaret Deverell, Chief Accounting Officer, Robert Lande, Chief Financial Officer, and David S. Sassoon, General Counsel, will submit their resignations to the Board.
The press release said that “the resignation of these executives from Global Brokerage will allow each of them to focus their priorities in these roles to FXCM Group”.