Nasdaq Inc. secures leadership with new executive contracts

Nasdaq Inc. (NASDAQ:NDAQ), currently valued at $42.03 billion, has finalized new employment agreements with three top executives, ensuring continuity in its leadership structure. The contracts, detailed in a recent SEC filing, involve Adena T. Friedman, Chair and Chief Executive Officer; Tal Cohen, President; and Bradley J. Peterson, Executive Vice President and Chief Information and Chief Technology Officer. According to InvestingPro data, the stock has recently entered oversold territory despite maintaining strong long-term performance, with a 22.7% return over the past year.

Adena Friedman’s new contract, effective from March 11, 2025, extends her tenure as CEO until January 1, 2030. The agreement sets her annual base salary at $1.4 million, with a potential annual bonus of up to 300% of her base salary. Additionally, Friedman will be eligible for equity awards with a minimum target value of $15 million for 2025 and other standard senior executive benefits. Should she be terminated without cause or leave for a good reason, Friedman is entitled to severance equal to twice her base salary and bonus, among other benefits. Under her leadership, Nasdaq has maintained impressive profitability with a 62.8% gross margin and generated $1.73 billion in levered free cash flow over the last twelve months.

Tal Cohen’s agreement, which began on March 10, 2025, also runs through January 1, 2030. Cohen’s annual base salary is set at $750,000 with a target annual bonus of 200% of his salary. His contract includes a one-time equity award of $7 million and the possibility of additional equity awards valued at $6 million for 2025. Cohen’s severance package includes 1.5 times his base salary and bonus, continued equity vesting for 12 months, and other benefits.

Bradley Peterson’s new agreement, commencing on the same date as Cohen’s, will continue until January 1, 2028. Peterson’s annual salary is $650,000, with a target bonus of 175%. His 2025 equity award target is $3.2 million, and his severance benefits include a pro-rata target bonus, continued equity vesting, and health and welfare coverage, among others.

All three agreements include provisions for additional severance and full equity vesting should a qualifying termination occur within a specified period around a change in control of the company. They also allow for retirement notices, after which the executives will continue to receive compensation and benefits through the notice period.

These agreements are part of Nasdaq’s strategy to maintain stable leadership and are subject to standard release of claims and compliance with restrictive covenants. The full terms of these agreements will be included in Nasdaq’s Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. Eight analysts have recently revised their earnings estimates upward for the upcoming period, suggesting confidence in the company’s direction. For deeper insights into Nasdaq’s financial health and comprehensive analysis, including more than 30 key metrics and expert recommendations, visit InvestingPro, where you can access the detailed Pro Research Report available for this stock.

In other recent news, Nasdaq Inc. reported its fourth-quarter 2024 earnings, surpassing analyst expectations with earnings per share of $0.76, exceeding the forecast of $0.74. The company also exceeded revenue projections, posting $1.23 billion compared to the expected $1.22 billion. Nasdaq continues to lead as the top U.S. exchange for IPOs, with $22.97 billion raised across 180 listings in 2024. In a strategic move, Nasdaq has initiated cash tender offers to repurchase up to $200 million of its outstanding debt securities, targeting three series of senior notes. Furthermore, the company has announced the appointment of Brandis DeSimone as Senior Vice President, Head of East Coast Listings, as part of its strategy to enhance client relations. Nasdaq also plans to introduce 24-hour trading by the second half of 2026, pending regulatory approval. These developments underscore Nasdaq’s ongoing efforts to strengthen its market position and financial health.

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