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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