Facebook Inc (NASDAQ:FB) IPO chaos on Nasdaq OMX Group Inc (NDAQ) behalf is costing the exchange $62 million cash compensation.
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The NASDAQ had reported that it has raised its original compensation plan for the problems encountered during the initial public offering of Facebook by many investors. The IPO was heavily sought after by the investors that the traffic had caused the exchange’s IPO system to glitch out for few moments.
The exchange had originally planned a partial compensation payment through cash and trading credits or rebates. But, NASDAQ’s compensation plan had drawn severe criticism from other exchanges citing that the trading credits would force the firms to trade on NASDAQ. The compensation is expected to be paid out within six months after it files the compensation plan with the Securities and Exchange Commission.
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FB shares are down 24.32% after the IPO as the Company’s retrieving revenue growth concerns its investors. Facebook reports its first quarterly results post the over subscribed IPO on July 26, 2012.
The social network site had reported revenue of $1.058 billion in the March 2012 quarter and operating income of $381 million. Net income in the first quarter of fiscal 2012 was $205 million and $0.09 per diluted share. Included in the net income was share based compensation of $103 million.