Coleman's compensation only included what he
made after the takeover of Knight had been completed in July.
Coleman's base salary going forward will be $1 million
Former Knight CEO Thomas Joyce, who left the company just days
after the takeover was completed, was compensated $7.9 million
On August 1, 2012, a software problem at Knight caused its
automated trading system to flood the market with millions of
unintentional orders over a 45-minute period, leaving the firm
with a huge position it had to unload at a total loss of $461.1
Following the glitch, Knight secured $400 million in rescue
financing — in exchange for a stake of more than 70 percent in
the company — from a group of investors that included Getco and
was led by Jefferies Group Inc. Jefferies later helped finance
Getco's acquisition of Knight.
After the new company was formed, KCG ended up paying a $12
million fine to the SEC, which found the company had violated
certain trading regulations on the day of the glitch.
The same year that Knight had its fatal error, Getco was having
its own problems. Profits at Getco plunged 90 percent in 2012 as
market volumes and volatility declined, according to a
regulatory filing last year.
KCG also said in the filing on Thursday that it had an agreement
under which KCG would lease and operate Coleman's personal
aircraft on behalf of KCG on a nonexclusive basis.
The company said it would reimburse Coleman $5,000 per flight
hour for use of his aircraft by employees of KCG other than
Coleman, though the amount charged in any single year cannot
exceed $125,000 without the general approval of KCG's board.
During 2013, KCG reimbursed Coleman $89,110 for use of the
aircraft by other KCG employees.
(Editing by Eric Walsh)
[© 2014 Thomson Reuters. All rights
Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.