Nasdaq OMX Group Inc has announced the reduction of chief executive Robert Greifeld’s bonus by US$542,100 over the failures of the Facebook IPO last year.
Greifield’s bonus will fall by 62 per cent to US$1.35 million, according to a Nasdaq filing with the Securities and Exchange Commission (SEC).
“The committee and board explicitly considered the Facebook IPO in connection with their review and determination of these reduced payouts,” Nasdaq said.
Anna Ewing, Nasdaq’s executive vice president of Global Technology Solutions, also suffered a US$263,625 cut to her bonus for 2012.
The Facebook IPO failures included failure of systems, which cost investors millions.
The listing price of Facebook was also disappointing to investors as its stocks lost value within a month. The company however went ahead to make US$16 billion in the IPO.
There were also accusations against underwriter Morgan Stanley of issuing too many shares and setting the initial price too high. Other Facebook executives were also accused of sharing Facebook’s earnings before the public offering.
Facebook has been looking for ways to increase its revenue for investors. With the change in the product and their recent launch of Facebook Home, the company aims to boost investor confidence by valuing its shares higher.
