Knight Capital Group Inc.(NYSE:KCG) chairman and chief executive director Thomas Joyce is ready to collect $7.5 million following a negotiated company takeover earlier this month. The retention amount will be collected by Mr. Joyce when Getco Holding Co acquires Knight Capital Group Inc.(NYSE:KCG).
The Chicago based Getco Holding Co a high frequency trading firm which beats the competition in acquiring Knight Capital Group Inc.(NYSE:KCG)for about $ 1.4 billion. The bonus amount of $ 7.5 million would be collected by Joyce when the purchase is completed on the Dec 19 filing.
The formed new company will be called as Knight Capital Getco, and if the merger is not possible Getco or Knight Capital Group Inc.(NYSE:KCG) would be responsible in paying $53 million to the other party.
A trading error cost Knight Capital Group Inc.(NYSE:KCG) to go bankrupt in August; the New Jersey based company was hit by $450 million and was settled for a takeover by Getco. According to a statement issued last week Joyce will be the chairman of the merged company’s board, while Daniel Coleman the present chief executive officer of Getco will be the president and chief executive of the new organization.
According to the new employment contract Joyce’s term will end when the acquisition is settled or at the last day of 2014 whichever is sooner, the filing said. The bonus payment to Joyce is made instead of severance and benefits highlighted in an older agreement that was in course to expire this month.
Power Peg was the name of the software that caused the malfunction in Knight Capital Group Inc.(NYSE:KCG) trading and it has been completely removed from its system, the company quoted in the filing. Currently there is no remaining or threatened investigation by any government body as of august 1 trading error, the filing said.
The shares of Capital Group Inc.(NYSE:KCG) is down by 0.57% to close at $3.47.