Reorganized Global Brokerage to have Kenneth Grossman, Arthur Gruen and Bryan Reyhani as Directors
Arthur Gruen and Bryan Reyhani are set to be independent directors with each of them to receive annual compensation of $100,000.
Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, has provided some information on the plans concerning its governance as a reorganized entity. Global Brokerage, which filed its Chapter 11 bankruptcy petition in December 2017, provided more details on its reorganization on Friday, January 5th, via its plan supplement submitted with the United States Bankruptcy Court for the Southern District of New York.
The plan supplement includes a number of documents, such as a Service Agreement between FXCM Group, LLC and Global Brokerage, Inc. The plan supplement also provides a List of Directors and Officers of Reorganized Debtor, that is, of reorganized Global Brokerage.
Directors
- Kenneth Grossman
- Arthur Gruen (Independent)
- Bryan Reyhani (Independent)
Each independent director will receive compensation of $100,000 per year.
Kenneth Grossman will be Global Brokerage’s Chief Executive Officer. He will be compensated pursuant to the terms of his employment agreement from May 2017.
Let’s recall that on May 15, 2017, the Board of Directors of Global Brokerage, Inc. appointed Mr Grossman as Global Brokerage’s Chief Executive Officer. Dror (Drew) Niv resigned as interim Chief Executive Officer of Global Brokerage.
Pursuant to the terms of the Employment Agreement, Mr Grossman is set to serve as Global Brokerage’s Chief Executive Officer until no later than May 31, 2018. He will receive (i) compensation of $600,000 per year, and (ii) a bonus of $1,000,000 upon completion of the Employment Term. If Mr Grossman’s employment is terminated by the company not for cause, then he will be entitled to receive his compensation through May 31, 2018 and the full bonus.
Mr Grossman, Mr Gruen and Mr Reyhani are all individual defendants in a “mega lawsuit” brought by former investors into FXCM Inc securities. According to the complaint, each of the individual defendants:
- directly participated in the management of the company;
- was directly involved in the day-to-day operations of the company at the highest levels;
- was privy to confidential proprietary information concerning the company and its business and operations;
- was directly or indirectly involved in drafting, producing, reviewing and/or disseminating the false and misleading statements and information;
- was directly or indirectly involved in the oversight or implementation of the company’s internal controls;
- was aware of or recklessly disregarded the fact that the false and misleading statements were being issued concerning the company; and/or
- approved or ratified these statements in violation of the federal securities laws.
The New York Southern District Court has to decide whether to stay the lawsuit against the individual defendants. The case was already stayed against Global Brokerage Inc as it filed for Chapter 11 bankruptcy.
