Who is Lawrence E. Harris and why was he appointed to the board?

Lawrence E. Harris was elected as a new director of Interactive Brokers Group, Inc. on July 12, 2007. He has also been appointed to the Audit Committee. His appointment is intended to strengthen the board's governance, and he is considered an independent director under relevant regulations.

What is the compensation for Dr. Harris as a new director?

Dr. Harris will receive an annual retainer of $100,000 and a restricted stock grant valued at $75,000, which will vest over five years. He may also receive an additional $25,000 annually per committee he chairs. Out-of-pocket expenses for meeting attendance will be reimbursed.

Does Dr. Harris have any financial ties to Interactive Brokers that could pose a conflict of interest?

Dr. Harris has an active retail brokerage account with a subsidiary of Interactive Brokers and has borrowed stock to establish short positions. The filing states these activities were conducted in the ordinary course of business, on standard terms, and did not involve more than normal risk of collectibility or other unfavorable features. No other transactions requiring disclosure under Regulation S-K were noted.

How does this appointment affect the independence of Interactive Brokers' board?

The appointment of Dr. Harris, who is considered an independent director, increases the number of independent directors on the board. Following his election, the company has six directors in total, with two meeting the independence requirements of the NASDAQ Global Select Market. This strengthens the board's independent oversight.

IBKR 8-K: Leadership Changes

Summary

Interactive Brokers Group, Inc. (IBKR) filed an 8-K on July 18, 2007, reporting a significant addition to its Board of Directors. The company announced the election of Lawrence E. Harris as a new director, effective July 12, 2007. Dr. Harris has also been appointed to the Audit Committee, a key oversight role within the company. This appointment is notable as it strengthens the board's governance structure, with the company emphasizing Dr. Harris's independent director status according to NASD and SEC regulations. The filing also details Dr. Harris's compensation arrangements and confirms his existing relationship with the company as a retail brokerage client and stock borrower. These relationships are disclosed as being conducted in the ordinary course of business and on standard terms, posing no unusual risks. The addition of an independent director with a presumed focus on audit oversight is a positive development for corporate governance and investor confidence.

Key Highlights

1Lawrence E. Harris elected as a new director on July 12, 2007.
2Dr. Harris appointed to the Audit Committee of the Board.
3Dr. Harris is considered an independent director under NASD and SEC rules.
4Company now has six directors, with two meeting NASDAQ Global Select Market independence requirements.
5Dr. Harris will receive an annual retainer of $100,000 and a restricted stock grant valued at $75,000, vesting over five years.
6Additional compensation of $25,000 per committee will be provided if Dr. Harris chairs a committee.
7Dr. Harris maintains an active retail brokerage account and has borrowed stock from a subsidiary in the ordinary course of business.

Interactive Brokers Group, Inc. 8-K Report, Executive Changes (Jul 18, 2007)

Summary

Key Highlights

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