Although TD Ameritrade Institutional President Tom Nally and
seven other TD Ameritrade executives are leaving after the completion of the
merger with Charles Schwab, significant severance packages will be easing their
departures in at least some of their cases, according to a proxy filing with
the Securities and Exchange Commission.
Nally stands to receive $8.9 million in total payments and
benefits. Former TD Ameritrade CEO Tim Hockey departed in February with a
package worth more than $37 million.
Among the other former TD Ameritrade executives, Peter
deSilva, president of retail, is to get $5.5 million, while Stephen Boyle,
interim CEO and president, is to get $6.4 million and Steven Quirk, executive
vice president of trading and education, is to collect $5.7 million.
The news that these executives would be departing came three
days after Charles Schwab closed its $22 billion purchase of TD Ameritrade.
“No great surprise as the merger closes and integration
begins,” blogger Michael Kitces said in a tweet. “Much respect to them for
seeing the deal through and stewarding TDA to the end.” He added, with a
smiling emoji: “(I’m sure they were
appropriately compensated, too.)”
Schwab had also indicated it planned to have the current
19-member Schwab Executive Council — which includes CEO Walt Bettinger and
Chairman Chuck Schwab — lead the firm, according to a memo shared with
ThinkAdvisor and first reported by Wealth Management.
“As result of these decisions, the following members of TD
Ameritrade Senior Operating Council
(SOC) will be leaving the company,” the memo stated. Those executives
included Boyle, deSilva, Nally and Quirk. Also included were: Prashant Bhatia,
managing director, Enterprise Strategy & Corporate Development; Karen
Ganzlin, executive vice president and chief human resources officer; Spyro
Karetsos, chief risk officer; and Vijay Sankaran, chief information officer.
Joe Moglia, TD Ameritrade’s former chairman, announced Oct.
6 that he was departing. Dani Fava, the former head of innovation for TD
Ameritrade Institutional, already had left the firm, in July, and is now head
of strategic development for Envestnet. In August, Skip Schweiss, the former
managing director of Retirement Plan Solutions and Advisor Advocacy for TD
Ameritrade Institutional, also departed.
The following TD Ameritrade senior executives are remaining
on and joining Schwab, according to an RIABiz report: Kim Hillyer, managing
director of corporate communications; James Kostulias, managing director
integration office; Lee McAdoo, managing director of business; Jon Peterson,
interim chief financial officer, and Andrew Yolin, interim chief marketing
officer.
The full integration of the two firms is expected to take 18
to 36 months to complete. Until then, Schwab and TD Ameritrade will operate as
separate businesses.
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