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StoneX Group Inc. (NASDAQ:SNEX), a prominent player in the Capital Markets industry with a market capitalization of $3.85 billion, has disclosed new compensatory arrangements for certain executives, according to a recent 8-K filing with the Securities and Exchange Commission. The company’s stock has shown remarkable strength, delivering a 79% return over the past year and currently trading near its 52-week high of $122. According to InvestingPro analysis, the company maintains a healthy financial position with a current ratio of 1.64, indicating strong liquidity.
On Monday, the company entered into an employment agreement with Charles Lyon, the Group President. The agreement outlines an annual base salary and eligibility for the company’s annual bonus program, with a payout of approximately 70% in cash and 30% in restricted stock. The stock vests as per the terms of the award agreement, with shares determined using a 25% discount to the fair market value. Lyon is also eligible to participate in the company’s long-term incentive performance-based cash compensation plan (LTIP).
In case of termination without "Cause" or resignation for "Good Reason," Lyon is entitled to an 18-month base salary paid in installments over the same period. This extends to 24 months’ base salary paid in a lump sum if termination occurs within 12 months following a "Change of Control." Additional entitlements include one-and-a-half times his target annual bonus, a pro rata bonus based on actual performance, the accrued but unpaid annual bonus from the previous year, and continued health benefits for 18 months, which extends to 24 months if termination follows a Change of Control.
The employment agreement also includes a non-compete clause for one year post-termination, reduced to six months if termination is without "Cause" or for "Good Reason" after a Change of Control. It also contains non-solicitation covenants concerning employees, consultants, or clients for one year, and a non-disclosure covenant for confidential information post-termination.
Furthermore, an amendment to the employment agreement of Sean O’Connor, effective today, states that he will no longer be entitled to the company’s Annual Bonus or participate in the LTIP.
These executive compensation updates will be detailed further in StoneX Group’s Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. The company, headquartered in New York and incorporated in Delaware, has a fiscal year-end of September 30. This information is based on a press release statement.
In other recent news, StoneX Group Inc. reported first quarter earnings that surpassed analyst estimates. The financial services firm posted adjusted earnings per share of $2.54, outperforming the projected $1.94. However, revenue for the quarter was reported at $492.1 million, falling short of the consensus forecast of $849.2 million.
These recent developments also include a 23% year-over-year rise in net income to $85.1 million and a 19% increase in diluted EPS to $2.54 per share. StoneX saw strong client engagement across all operating segments and products, resulting in a 17% year-over-year growth in net operating revenues to $492.1 million.
The company also reported increases in operating revenues in its Commercial and Institutional segments, as well as a significant jump in Self-Directed/Retail revenues. In addition, StoneX announced a three-for-two stock split to be effected as a stock dividend. The company plans to host a conference call to discuss these results further.
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