NYSE Euronext said it reduced pay of its chief executive, Duncan L. Niederauer, by 29 percent to bring compensation more in line with returns being generated for shareholders.
Base pay of other top executives stayed frozen for the fifth year in a row, according to a filing of supplementary information for shareholders prior to their annual meeting April 25 in New York. Shareholders will get a say on pay, in a vote at their annual meeting.
The exchange operator and technology supplier said it reduced total direct compensation for Niederauer by $3.65 million from what had been approved in 2012, prior to a “say-on-pay” vote at its last shareholders meeting.
The reduction includes a 39 percent cut in Niederauer’s bonus in 2013, which is based on 2012 company performance, compared to the bonus he got in 2012, for 2011 results.
The company said Niederauer also took “a voluntary reduction of his long-term incentive plan (“LTIP”) award by 50%,’’ without describing the amount.
Increased by 9 percent or $76 million was the amount of earnings before interest, taxes, depreciation and amortization required to fund executive bonuses.
Bonuses paid to top executives was also reduced by an average of 35 percent “to reflect lower attainment of the pre-established EBITDA performance goal, thereby evidencing a strong link between pay and performance.’’
Net income at NYSE Euronext rose from $577 million in 2010 to $619 million in 2011, but fell to $348 million in 2012, according to its annual financial report to the Securities and Exchange Commission.
NYSE Euronext will be seeking approval from shareholders of a plan to merge with Intercontinental Exchange, an Atlanta operator of derivatives marketplaces and clearing services.
