COMPENSATION

Nasdaq Apologizes on Facebook Mess

Offers brokers $40 million for IPO losses.

In an exclusive interview with The Wall Street Journal, NASDAQ CEO Robert Greifeld said he and other NASDAQ affiliates “owe the industry an apology” for technical problems associated with Facebook’s initial public offering. Having conducted “an entirely clinical, analytical” review of the events May 18 to determine trading losses caused by the IPO, Greifield plans to offer Wall Street brokers $40 million in compensation pending the SEC’s approval. Roughly $26 million of that compensation would be credited through reduced trading costs, while the remaining $13.7 million would be paid to brokers in cash. NASDAQ’s compensation plan falls short of the $100 million in losses estimated by brokers and their clients.