Facebook IPO compensation plan reportedly due next week
Nasdaq aims to release the plan next week, Fox Business News reports -- and it could be an all-cash fund larger than the $40 million fund originally proposed.
Nasdaq plans to release its Facebook IPO investor compensation plan next week and it will probably be more than the $40 million originally proposed, Fox Business News reported today.
The deal will be all cash and Nasdaq is working with the Securities and Exchange Commission on a second draft of the proposal, unnamed sources told Fox.
The SEC has declined to comment. We have a call into the Nasdaq and will update when we get more information.
The stock exchange's bungle of the social network company's opening day of trading has been widely criticized.
Facebook's first day as a public company kicked off with a 30-minute delay, after which traders complained they were not able to confirm changes or cancellations made to Facebook orders. Later on in the morning, some traders said they had not received confirmation from Nasdaq that transactions had actually been completed.
Nasdaq's proposed $40 million deal didn't quell upset investors. The original plan, which will be reviewed by the Securities and Exchange Commission after public comment, had the exchange paying $13.7 million in cash to member firms that suffered losses, including the profit it made from first-day trading. The rest would come in the form of trading discounts.
Some investors estimated the total amount of losses to be close to $200 million.