NEW YORK Dec 26 Thomas Joyce, whose position as
chairman and chief executive of Knight Capital Group was
on the line as the company negotiated a takeover earlier this
month, will be paid $7.5 million to ensure he remains with the
stock-trading company, according to a regulatory filing.
The payment will be made to Joyce when Knight is acquired by
Getco Holding Co, a high-frequency trading firm that beat out a
competitor to acquire Knight for about $1.4 billion.
The payment is aimed at ensuring that Joyce remains "through
at least the consummation of the proposed transactions" with
Getco, it said.
The merger, which was announced on Dec. 19, is expected to
close in late April or early May.
Knight's board is making the payment to ensure Joyce's
"continued and dedicated service to the company," Knight's chief
financial officer, Steven Bisgay, wrote on behalf of the board
in a letter filed with the Securities and Exchange Commission on
Joyce's contract with Knight had been scheduled to terminate
at year-end. He initially had been scheduled to become
nonexecutive chairman by Getco. Instead, he is to survive under
the merger agreement as executive chairman of the combined firm.
Getco leader Daniel Coleman will be chief executive of the
as-yet unnamed new company.
Knight's principal business is making markets in hundreds of
large- and small-cap stocks for other brokerage firms.
In a separate filing on Wednesday, TD Ameritrade Holding
Corp said it has agreed to support the Getco
acquisition. The discount brokerage was one of six firms that
helped rescue Knight in August following a nearly fatal software
TD Ameritrade owns about 26 million Knight shares, or about
7.3 percent of the firm's outstanding common stock assuming full
conversion of the convertible shares issued to the rescuing
firms. TD Ameritrade's chief executive, Fred Tomczyk, sits on
the Knight board that approved the Getco takeover.
Other firms that received convertible shares and are
expected to approve the deal are Getco itself, Jefferies Group
Inc, which is financing the takeover, Blackstone Group
LP, Stifel Financial and Stephens Inc.