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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934

Filed by the Registrant ý

Filed by a Party other than the Registrant o

Check the appropriate box:

o

 

Preliminary Proxy Statement

o

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

ý

 

Definitive Proxy Statement

o

 

Definitive Additional Materials

o

 

Soliciting Material under §240.14a-12

 

INTERACTIVE BROKERS GROUP, INC.

(Name of Registrant as Specified In Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

ý

 

No fee required.

o

 

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
    (1)   Title of each class of securities to which transaction applies:
        
 
    (2)   Aggregate number of securities to which transaction applies:
        
 
    (3)   Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
        
 
    (4)   Proposed maximum aggregate value of transaction:
        
 
    (5)   Total fee paid:
        
 

o

 

Fee paid previously with preliminary materials.

o

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

(1)

 

Amount Previously Paid:
        
 
    (2)   Form, Schedule or Registration Statement No.:
        
 
    (3)   Filing Party:
        
 
    (4)   Date Filed:
        
 

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LOGO

INTERACTIVE BROKERS GROUP, INC.
One Pickwick Plaza
Greenwich, Connecticut 06830

March 10, 2016

Dear Stockholder:

              You are cordially invited to attend the 2016 Annual Meeting of Stockholders of Interactive Brokers Group, Inc. We will hold the meeting on Thursday, April 21, 2016 at 9:30 a.m. Eastern Time, at The St. Regis New York, Two East 55th Street, New York, NY 10022. We hope that you will be able to attend.

              Details regarding admission to the meeting and the business to be conducted are described in the Notice of Internet Availability of Proxy Materials you received in the mail and in this proxy statement. We have also made available a copy of our 2015 Annual Report with this proxy statement. We encourage you to read our Annual Report. It includes our audited financial statements and provides information about our business and products.

              Securities and Exchange Commission rules allow companies to furnish proxy materials to their stockholders on the Internet. We are pleased to take advantage of these rules and believe that they enable us to provide you with the information you need, while making delivery more efficient and more environmentally friendly. In accordance with these new rules, we have sent a Notice of Internet Availability of Proxy Materials to each of our stockholders providing instructions on how to access our proxy materials and 2015 Annual Report over the Internet.

              Your vote is very important to us. Whether or not you plan to attend the meeting in person, your shares should be represented and voted.

    Sincerely,

 

 


GRAPHIC

 

 

Thomas Peterffy
Chief Executive Officer and
Chairman of the Board of Directors

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LOGO

INTERACTIVE BROKERS GROUP, INC.
One Pickwick Plaza
Greenwich, Connecticut 06830

Notice of 2016 Annual Meeting of Stockholders

TIME AND DATE   9:30 a.m., Eastern Time, on Thursday, April 21, 2016

PLACE

 

The St. Regis New York, Two East 55th Street, New York, NY 10022

ITEMS OF BUSINESS

 

To elect eight directors to the Board of Directors to serve until the annual stockholders' meeting in 2017, and until their respective successors have been elected and qualified.

 

To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2016.

 

To transact such other business as may properly come before the Annual Meeting.


ADDITIONAL INFORMATION

 

Additional information regarding the items of business to be acted on at the Annual Meeting is included in the accompanying Proxy Statement.

RECORD DATE

 

The record date for the determination of the stockholders entitled to vote at the Annual Meeting, or any adjournments or postponements thereof, is the close of business on February 26, 2016.

INSPECTION OF LIST OF STOCKHOLDERS OF RECORD

 

A list of the stockholders of record as of February 26, 2016 will be available for inspection at the Annual Meeting, and for ten days prior to the Annual Meeting, during ordinary business hours at our offices at One Pickwick Plaza, Greenwich, CT 06830. Please contact our Corporate Secretary at 203-618-4070 if you wish to inspect the list of stockholders prior to the Annual Meeting.

PROXY VOTING

 

Your vote is very important. Whether or not you plan to attend the Annual Meeting, we encourage you to read this proxy statement and submit your proxy or voting instructions as soon as possible. For specific instructions on how to vote your shares, please refer to the instructions on the Notice you received in the mail, the section entitled Voting Instruction and Information beginning on page 1 of this proxy statement or, if you requested to receive printed proxy materials, your enclosed proxy card.


Important Notice of Internet Availability of Proxy Materials for the Stockholder Meeting
to be Held on April 21, 2016: This Proxy Statement and our 2015 Annual Report are available
at www.proxyvote.com

    By Order of the Board of Directors,

 

 


GRAPHIC
    Paul J. Brody
    Chief Financial Officer, Treasurer and Secretary

March 10, 2016


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INTRODUCTION

  1

VOTING INSTRUCTION AND INFORMATION

  1

Why did I receive a Notice regarding the Availability of Proxy Materials?

  1

Who can vote at the Annual Meeting?

  1

Who is and is not a stockholder of record?

  2

What do I need to do to attend the Annual Meeting?

  2

How do I request paper copies of the proxy materials?

  2

How do I vote?

  3

How can I revoke my proxy or substitute a new proxy or change my vote?

  4

How can I obtain an additional proxy card?

  4

If I submit a proxy by Internet, telephone or mail, how will my shares be voted?

  4

If I hold my shares in "street name" and do not provide voting instructions, can my broker still vote my shares?

  4

What vote is required for a director to be elected or for the other proposals to be ratified?

  5

How many votes are required to transact business at the Annual Meeting?

  5

How do I obtain more information about the Company?

  5

Who pays for the expenses of this proxy solicitation?

  5

ITEM 1. ELECTION OF DIRECTORS

  6

Nominees for Election to our Board

  6

Directors' Recommendation

  9

Board Leadership Structure

  9

The Board's Role in Risk Oversight

  9

Board Meetings and Committees

  9

Compensation Committee Interlocks and Insider Participation

  12

IBG LLC Steering Committee

  12

Communication with the Board of Directors

  12

Compensation Discussion and Analysis

  13

Executive Compensation

  18

Beneficial Ownership of Directors, Executive Officers and Owners of More Than Five Percent

  24

Certain Relationships and Related Transactions

  26

ITEM 2. RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

  29

Fees Paid to Independent Registered Public Accounting Firm

  30

Directors' Recommendation

  30

OTHER MATTERS

  30

Section 16(a) Beneficial Ownership Reporting Compliance

  30

Other Business

  31

Stockholder Proposals for 2016 Annual Meeting of Stockholders

  31

Stockholder Recommendations for Director Candidates

  31

Important Notice Regarding Delivery of Stockholder Documents

  31

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LOGO

INTERACTIVE BROKERS GROUP, INC.
One Pickwick Plaza
Greenwich, Connecticut 06830



PROXY STATEMENT



ANNUAL MEETING OF STOCKHOLDERS

April 21, 2016



INTRODUCTION

This Proxy Statement is furnished in connection with a solicitation of proxies by the Board of Directors (the "Board") of Interactive Brokers Group, Inc. ("IBG, Inc."), a Delaware corporation, to be used at our 2016 Annual Meeting of Stockholders (the "Annual Meeting") on Thursday, April 21, 2016 at 9:30 a.m., Eastern Time, and at any adjournments or postponements of the Annual Meeting. This Proxy Statement and the accompanying form of proxy are first being made available on or about March 10, 2016.

When we use the terms "Company," "we," "us" and "our," we mean Interactive Brokers Group, Inc., a Delaware corporation, its consolidated subsidiaries and predecessor companies.


VOTING INSTRUCTION AND INFORMATION

Why did I receive a Notice regarding the Availability of Proxy Materials?

In accordance with Securities and Exchange Commission ("SEC") rules, instead of mailing a printed copy of our proxy materials, we may send a Notice of Internet Availability of Proxy Materials (the "Notice") to stockholders. All stockholders will have the ability to access the proxy materials on a website referred to in the Notice or to request a printed set of these materials at no charge. You will not receive a printed copy of the proxy materials unless you specifically request one. Instead, the Notice instructs you as to how you may access and review all of the important information contained in the proxy materials via the Internet and submit your vote via the Internet or telephonically.

In addition, you may request to receive future proxy materials on an ongoing basis (i) electronically by e-mail or (ii) in printed form by mail. Choosing to receive future proxy materials by e-mail will save the Company the cost of printing and mailing documents to stockholders and will reduce the impact of annual meetings on the environment. Your election to receive proxy materials by e-mail or by mail will remain in effect until you terminate it.

Who can vote at the Annual Meeting?

You are entitled to vote your shares of Class A common stock, par value $0.01 per share (the "Common Stock"), of the Company if you were a stockholder at the close of business on February 26, 2016, the record date for the Annual Meeting. At the close of business on the record date, 63,985,335 shares of Common Stock were outstanding. In addition, 100 shares of Class B common stock, par value $0.01 per share (the "Class B Common Stock"), of the Company were outstanding. All of the

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outstanding shares of Class B Common Stock are held of record by IBG Holdings LLC ("Holdings"), an entity controlled by Mr. Thomas Peterffy, our founder, Chairman and Chief Executive Officer, through his ownership of the voting membership interests in Holdings.

The holders of the Common Stock and the Class B Common Stock will vote together as a single class on each of the proposals described in this proxy statement. The holder of each share of the Common Stock is entitled to one vote per share. Pursuant to our Amended and Restated Certificate of Incorporation, the holder of each share of the Class B Common Stock is entitled to 3,430,405 votes (that number equal to the number of membership interests in IBG LLC, the holding company for our businesses, such holder held on the record date divided by 100). Accordingly, Holdings, as the sole holder of the Class B Common Stock, is expected to be entitled to approximately 343,040,504 votes in the aggregate, or approximately 84.3% of all votes eligible to be cast at the Annual Meeting.

As of March 9, 2016, our directors and executive officers beneficially owned an aggregate of approximately 1,080,918 shares of Common Stock and awards that vest within 60 days, constituting approximately 1.69% of the Common Stock outstanding as of such date, of which 747,534 shares can be voted at the annual meeting and constituting approximately 0.18% of all votes eligible to be cast at the Annual Meeting. It is expected that such directors and executive officers will vote or direct the vote of all shares of Common Stock held or owned by such persons, or over which such persons have voting control, in favor of the proposals described in this proxy statement. It also is expected that Holdings will vote its shares of Class B Common Stock, expected to constitute approximately 84.3% of all votes eligible to be cast at the Annual Meeting, in favor of the proposals. Accordingly, the voting power of Holdings alone is sufficient to assure the approval of the proposals. See "Beneficial Ownership of Directors, Executive Officers and Owners of More Than Five Percent."

Who is and is not a stockholder of record?

If you are a stockholder of record, Broadridge is sending these proxy materials to you directly. If you hold shares in street name, these materials are being sent to you by the bank, broker or similar institution through which you hold your shares.

What do I need to do to attend the Annual Meeting?

All stockholders must bring an acceptable form of identification, such as a driver's license, in order to attend the Annual Meeting in person.

In addition, if you hold shares of Common Stock in "street name" and would like to attend the Annual Meeting, you will need to bring an account statement or other acceptable evidence of ownership of shares as of the close of business on February 26, 2016, the record date for the Annual Meeting.

How do I request paper copies of the proxy materials?

If you received a Notice by mail, you will not receive paper copies of the proxy materials in the mail unless you request them. Instead, the Notice instructs you on how to access and read the Proxy Statement and Annual Report and how you may submit your proxy over the Internet. If you received a Notice by mail and would like to receive a printed copy of the materials, please follow the instructions on the Notice for requesting the materials, and we will promptly mail the materials to you.

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How do I vote?

You may vote using any of the following methods:

The Internet and telephone voting procedures are designed to authenticate stockholders' identities, to allow stockholders to give their voting instructions and to confirm that stockholders' instructions have been recorded properly. We have been advised that the Internet and telephone voting procedures that have been made available to you are consistent with the requirements of applicable law. Stockholders voting by Internet or telephone should understand that, while we and Broadridge do not charge any fees for voting by Internet or telephone, there may nevertheless be costs, such as usage charges from Internet access providers and telephone companies that must be borne by the stockholder.

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How can I revoke my proxy or substitute a new proxy or change my vote?

You can revoke your proxy or substitute a new proxy or change your vote before your proxy is voted at the Annual Meeting.

How can I obtain an additional proxy card?

If you lose, misplace or otherwise need to obtain a proxy card, and:

If I submit a proxy by Internet, telephone or mail, how will my shares be voted?

If you properly submit your proxy by one of these methods, and you do not subsequently revoke your proxy, your shares of Common Stock will be voted in accordance with your instructions.

If you sign, date and return your proxy card but do not give voting instructions, your shares of Common Stock will be voted as follows: FOR the election of our director nominees, FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2016, and otherwise in accordance with the judgment of the persons voting the proxy on any other matter properly brought before the Annual Meeting.

If I hold my shares in "street name" and do not provide voting instructions, can my broker still vote my shares?

Brokerage firms have authority to vote clients' unvoted shares on some "routine" matters. When a brokerage firm votes its clients' unvoted shares on routine matters, these shares are counted to determine if a quorum exists to conduct business at the meeting. A brokerage firm cannot vote clients' unvoted shares on non-routine matters, which results in a broker non-vote. A broker non-vote will be treated as not being entitled to vote on the proposal. For proposals that require a majority of votes voting on the proposal to be approved (such as the stockholder proposals), a broker non-vote will not be counted for purposes of determining whether the proposal has been approved.

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The Company's proposal to elect directors is considered a routine matter, but the stockholder proposals are not.

What vote is required for a director to be elected or for the other proposals to be ratified?

How many votes are required to transact business at the Annual Meeting?

A quorum is required to transact business at the Annual Meeting. The presence of Holdings, as the sole holder of the Class B Common Stock, will constitute a quorum for the transaction of business at the Annual Meeting. Abstentions and broker non-votes are treated as present for quorum purposes.

How do I obtain more information about the Company?

A copy of our 2015 Annual Report is available on the website www.proxyvote.com. You may obtain, free of charge, a copy of our Corporate Governance Guidelines, our Code of Business Conduct and Ethics and the charters for our Audit, Compensation and Nominating and Corporate Governance Committees by writing to: Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, CT 06830, Attn: Investor Relations; e-mail: investor-relations@interactivebrokers.com. All of these documents are also available on our website at http://investors.interactivebrokers.com.

Who pays for the expenses of this proxy solicitation?

We will pay the expenses of the preparation of proxy materials and the solicitation of proxies for the Annual Meeting. In addition to the solicitation of proxies by mail, solicitation may be made by certain directors, officers or employees of the Company telephonically, electronically or by other means of communication. Our directors, officers and employees will receive no additional compensation for any such solicitation. We will reimburse brokers and other similar institutions for costs incurred by them in mailing proxy materials to beneficial owners in accordance with applicable rules.

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ITEM 1.    ELECTION OF DIRECTORS

Our Board presently consists of eight directors. All of our directors are elected annually for a one-year term expiring at the Annual Meeting of Stockholders in the following year. Each director will hold office until his or her successor has been elected and qualified or until the director's earlier resignation or removal.

In identifying and recommending nominees for positions on our Board, our Nominating and Corporate Governance Committee places emphasis on the following criteria, among others:

Our Nominating and Corporate Governance Committee does not set specific, minimum qualifications that nominees must meet in order for the Committee to recommend them to our Board, but rather believes that each nominee should be evaluated based on his or her individual merits, taking into account the needs of the Company and the composition of our Board. In considering diversity, we consider diversity of viewpoints, backgrounds and experience. We do not, however, have any formal policy with regards to diversity in identifying nominees for a directorship, but rather consider it among the various factors relevant to any particular nominee. Our Nominating and Corporate Governance Committee evaluates possible candidates in detail, and suggest individuals to explore in more depth. Once a candidate is identified for serious consideration, the Chairman of our Board enters into a discussion with that candidate.

Nominees for Election to our Board

At the Annual Meeting, our stockholders will be asked to elect the eight director nominees set forth below for a one-year term expiring in 2017. While our Board does not anticipate that any of the director nominees will be unable to stand for election as a director nominee at the Annual Meeting, if that occurs, proxies will be voted in favor of such other person or persons who are recommended by our Nominating and Corporate Governance Committee and designated by our Board.

All of the director nominees currently are members of our Board and have been recommended for re-election by our Nominating and Corporate Governance Committee and approved and nominated for re-election by our Board and all of the director nominees have consented to serve if elected. Set forth below is information regarding the director nominees, which has been confirmed by each of them for inclusion in this Proxy Statement.

Thomas Peterffy   Director since November 2006

Mr. Peterffy, age 71, has been the Chairman of our Board and Chief Executive Officer since November 2006. Mr. Peterffy has been at the forefront of applying computer technology to automate trading and brokerage functions since he emigrated from Hungary to the United States in 1965. In 1977, after purchasing a seat on the American Stock Exchange and trading as an individual marker maker in equity options, Mr. Peterffy was among the first to apply a computerized mathematical model to continuously value equity option prices. By 1986, Mr. Peterffy had developed and deployed a fully integrated, automated market making system for stocks, options and futures. As this pioneering system was extended around the globe, online brokerage functions were added and, in 1993, Interactive Brokers was formed.

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As Chief Executive Officer, Mr. Peterffy is active in our day-to-day management. As a result of these professional and other experiences, Mr. Peterffy possesses particular knowledge and experience in a variety of areas, including his extensive knowledge of the Company's business, his experience in the electronic brokerage and trading industry and his leadership and strategic planning experience that strengthens the Board's collective knowledge, capabilities and experience.

Earl H. Nemser   Director since November 2006

Mr. Nemser, age 69, has been our Vice Chairman since November 2006. Mr. Nemser has been the Vice Chairman of IBG LLC since 1988 and also serves as a director and/or officer for various subsidiaries of IBG LLC. Mr. Nemser has served as Special Counsel to the law firm Dechert LLP since January 2005. Prior to such time Mr. Nemser served as Partner at the law firms of Swidler Berlin Shereff Friedman, LLP from 1995 to December 2004 and Cadwalader, Wickersham & Taft LLP prior to 1995. Mr. Nemser received a Bachelor of Arts degree in economics from New York University in 1967 and a Juris Doctor, magna cum laude, from Boston University School of Law in 1970. As a result of these professional and other experiences, Mr. Nemser possesses particular knowledge and experience in a variety of areas, including his extensive knowledge of the Company's business and his legal experience that strengthens the Board's collective knowledge, capabilities and experience.

Milan Galik   Director since November 2006

Mr. Galik, age 49, joined us in 1990 as a software developer and has served as President of the Company and IBG LLC since October 2014. Mr. Galik served as Senior Vice President, Software Development of IBG LLC from October 2003 to October 2014. In addition, Mr. Galik has served as Vice President of Timber Hill LLC since April 1998 and serves as a member of the board of directors of the Boston Options Exchange. Mr. Galik received a Master of Science degree in electrical engineering from the Technical University of Budapest in 1990. As a result of these professional and other experiences, Mr. Galik possesses particular knowledge and experience in a variety of areas, including his extensive knowledge of the Company's business, his experience as a software developer in the electronic brokerage and trading industry and his leadership experience that strengthens the Board's collective knowledge, capabilities and experience.

Paul J. Brody   Director since November 2006

Mr. Brody, age 55, has been our Chief Financial Officer, Treasurer and Secretary since November 2006. Mr. Brody joined the Company in 1987 and has served as Chief Financial Officer of IBG LLC since December 2003. Mr. Brody serves as a director and/or officer for various subsidiaries of IBG LLC. From 2005 to 2012, Mr. Brody served as a director, and for a portion of the time as member Vice Chairman, of OCC (formerly, The Options Clearing Corporation), of which Timber Hill LLC and Interactive Brokers LLC are members. He also served as a director of Quadriserv Inc., an electronic securities lending platform provider, from 2009 to 2015. Mr. Brody received a Bachelor of Arts degree in economics from Cornell University in 1982. As a result of these professional and other experiences, Mr. Brody possesses particular knowledge and experience in a variety of areas, including his extensive knowledge of the Company's business, his experience as a financial officer in the electronic brokerage and trading industry and his leadership experience that strengthens the Board's collective knowledge, capabilities and experience.

Lawrence E. Harris   Director since July 2007

Dr. Harris, age 59, is a professor of Finance and Business Economics at the University of Southern California, where he holds the Fred V. Keenan Chair in Finance at the Marshall School of Business. Dr. Harris also serves as trustee of the Clipper Fund, director of the Selected Funds, and as the research coordinator of the Institute for Quantitative Research in Finance. Dr. Harris formerly served as Chief Economist of the U.S. Securities and Exchange Commission. Dr. Harris earned his Ph.D. in

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Economics from the University of Chicago, and is a CFA charterholder. He is an expert in the economics of securities market microstructure and the uses of transactions data in financial research. He has written extensively about trading rules, transaction costs, index markets, and market regulation. Dr. Harris is also the author of the widely respected textbook Trading and Exchanges: Market Microstructure for Practitioners. As a result of these professional and other experiences, Mr. Harris has been determined to be an 'Audit Committee Financial Expert' under the SEC's rules and regulations, possesses particular knowledge and experience in a variety of areas, including accounting, economics and finance and securities markets dynamics and provides diversity of background and viewpoint by virtue of his academic record that strengthens the Board's collective knowledge, capabilities and experience.

Hans R. Stoll   Director since April 2008

Dr. Stoll, age 76, is The Anne Marie and Thomas B. Walker, Jr., Professor of Finance, Emeritus at the Owen Graduate School of Management, Vanderbilt University and founder of the Financial Markets Research Center. Dr. Stoll has published several books and more than 60 articles on numerous securities and finance related subjects. He is known for developing the put call parity relation and for his work in market microstructure. Dr. Stoll was on the faculty of the Wharton School from 1966 to 1980, at which time he joined the faculty at Vanderbilt. Dr. Stoll served as a member of the board of directors of OCC (formerly, The Options Clearing Corporation) from 2005 to 2008 and he has been president of the American Finance Association. Dr. Stoll received his A.B. degree from Swarthmore College in 1961 and his M.B.A. and Ph.D. degrees from the Graduate School of Business of the University of Chicago in 1963 and 1966, respectively. As a result of these professional and other experiences, Dr. Stoll possesses particular knowledge and experience in a variety of areas, including financial acumen and securities products experience and provides diversity of background and viewpoint by virtue of his academic record that strengthens the Board's collective knowledge, capabilities and experience.

Richard Gates   Director since April 2012

Richard Gates, age 44, co-founded TFS Capital in 1997. TFS is an independent advisory firm that has been dedicated to the construction of quantitative models that are designed to identify market inefficiencies. As a portfolio manager at this firm, he oversees several hedge funds and mutual funds that take both long and short positions in equities and futures. At TFS, his focus is on trade execution, factor research, and business development. Mr. Gates graduated from the University of Virginia in 1994 with a bachelor's degree in Chemical Engineering. As a result of these professional and other experiences, Mr. Gates possesses particular knowledge and experience in a variety of areas, including trade execution and evaluation of new trading technologies and platforms that strengthens the Board's collective knowledge, capabilities and experience.

Wayne H. Wagner   Director since April 2014

Wayne Wagner, age 77, is a consultant on issues related to investment management and securities trading. He co-founded Plexus Group, now part of ITG, Inc., in 1986. Plexus provided trading evaluation and advisory services to money managers, brokerage firms and pension plan sponsors. He was also a founding partner of Wilshire Associates and served as the Chief Investment Officer of Wilshire Asset Management. He participated in the design of the operating, balancing and evaluation algorithms for the world's first operational index fund at Wells Fargo Bank. He is recognized as instrumental in pioneering processes to reduce the costs of trading. Mr. Wagner has authored several books on the topic of trading and investment management and is currently the Research Committee Chairman of the CFA-Institute Research Foundation. As a result of these professional and other experiences, Mr. Wagner possesses particular knowledge and experience in a variety of areas, including

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trade execution and evaluation of new trading technologies and platforms that strengthens the Board's collective knowledge, capabilities and experience.

There are no family relationships between any of our directors or executive officers and any other of our directors or executive officers.

Directors' Recommendation

Our Board unanimously recommends a vote FOR the election of each of Mr. Peterffy, Mr. Nemser, Mr. Galik, Mr. Brody, Dr. Harris, Dr. Stoll, Mr. Gates and Mr. Wagner to our Board.

Board Leadership Structure

The Board's current leadership structure combines the positions of Chairman and Chief Executive Officer, and Dr. Harris serves as Lead Independent Director. Given the size and ownership structure of the company as a controlled company, as defined by NASDAQ Marketplace Rules, we believe that the current leadership structure is suitable for our organization.

The Board's Role in Risk Oversight

It is management's responsibility to manage risk and bring to the Board of Directors' attention any material risks to the Company. The Board of Directors has oversight responsibility through its Audit Committee which oversees the Company's risk policies and processes relating to the financial statements and financial reporting processes and the guidelines, policies and processes for mitigating those risks.

Board Meetings and Committees

Our Board held four meetings during our 2015 fiscal year. Each of our directors attended at least 75% of the meetings of our Board and the committees of our Board on which he served during fiscal year 2015. Attendance at Board and committee meetings during fiscal year 2015 was 100% for our directors as a group. Our directors are expected to attend annual meetings of stockholders at which they are nominees for election, Board meetings and meetings of the committees on which they serve, and to spend time needed and meet as frequently as necessary to properly discharge their responsibilities. Eight of our board members attended our 2015 annual meeting of stockholders.

Our Board has established an audit committee, a compensation committee and a nominating and corporate governance committee. The composition, duties and responsibilities of these committees are set forth below. In the future, our Board may establish other committees, as it deems appropriate, to assist it with its responsibilities. As a controlled company, we are not required by the NASDAQ Global Select Market to have a compensation committee or a nominating and corporate governance committee composed entirely of independent directors.

Audit Committee

Our Audit Committee is comprised of Dr. Harris (Chairman), Dr. Stoll and Mr. Gates, each of whom is an independent director within the meaning of the rules of the NASDAQ Global Select Market and the SEC. Our Audit Committee operates pursuant to a written charter that is available on our website at http://investors.interactivebrokers.com. Dr. Harris is an "audit committee financial expert" as defined in the SEC rules. Each member of our Audit Committee is financially literate. The composition of our Audit Committee satisfies the requirements of the NASDAQ Global Select Market and the SEC.

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Audit Committee Report

We, the Audit Committee of the Board of Directors of Interactive Brokers Group, Inc., have met and held discussions with management and Interactive Brokers Group, Inc.'s independent registered public accounting firm. As part of this process, we have:

Based on the review and discussions referred to above, we recommended to the Board of Directors that the audited financial statements be included in Interactive Brokers Group, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, for filing with the SEC.

Respectfully submitted,

The Audit Committee

Lawrence E. Harris, Chairman
Hans R. Stoll, Director
Richard Gates, Director

March 7, 2016

Director Independence

Because of Mr. Peterffy's substantial ownership, we are eligible to be, and are treated as a "controlled company" for purposes of the NASDAQ Marketplace Rules. As a result, we are not required by NASDAQ to have a majority of independent directors or to maintain compensation and nominating and corporate governance committees composed entirely of independent directors to continue to list shares of Common Stock on the NASDAQ Global Select Market.

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Compensation Committee

Our Compensation Committee is currently comprised of Messrs. Peterffy (Chairman) and Nemser, and operates pursuant to a written charter that is available on our website at http://investors.interactivebrokers.com. The primary responsibility of our Compensation Committee is to develop and oversee the implementation of our philosophy with respect to the compensation of our officers.

Compensation Committee Report

We, the Compensation Committee of the Board of Directors of Interactive Brokers Group, Inc., have reviewed and discussed with management the Compensation Discussion and Analysis contained in this Proxy Statement. Based on such review and discussions, we have recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement.

Respectfully submitted,

The Compensation Committee

Thomas Peterffy, Chairman
Earl H. Nemser, Director

March 7, 2016

Nominating and Corporate Governance Committee

Our Nominating and Corporate Governance Committee is currently comprised of Messrs. Peterffy (Chairman) and Nemser and Dr. Harris, and operates pursuant to a written charter that is available on our website at http://investors.interactivebrokers.com.

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Nominating and Corporate Governance Committee Report

We, the Nominating and Corporate Governance Committee of the Board of Directors of Interactive Brokers Group, Inc., have reviewed and conducted an evaluation of the performance of both the Board of Directors as a whole and the directors individually. During fiscal year 2015, we performed all of our duties and responsibilities under the Nominating and Corporate Governance Committee's charter.

Respectfully submitted,

The Nominating and Corporate Governance Committee

Thomas Peterffy, Chairman
Earl H. Nemser, Director
Lawrence E. Harris, Director

March 7, 2016

Summary of Board Membership and Number of Committee Meetings

The following table summarizes the current membership on each Board committee and the number of committee meetings held for fiscal year 2015.

Director
  Audit Committee
  Compensation
Committee

  Nominating and
Corporate Governance
Committee


 

Thomas Peterffy

      Chairman   Chairman

Earl H. Nemser

      ü   ü

Paul J. Brody

           

Milan Galik

           

Lawrence E. Harris

  Chairman       ü

Hans R. Stoll

  ü        

Richard Gates

  ü        

Wayne H. Wagner

           
 

Meetings held during fiscal 2015

  9   2   2
 

Compensation Committee Interlocks and Insider Participation

None of our executive officers has served as a member of the board of directors or compensation committee of any unrelated entity that has one or more executive officers serving on our Board or Compensation Committee.

IBG LLC Steering Committee

The management of IBG LLC and its subsidiaries is governed by a committee of our executive officers and certain other members of senior management, which we refer to as the steering committee. The steering committee handles day-to-day and strategic management issues, and reports to the Chief Executive Officer of IBG LLC, Mr. Peterffy.

Communication with the Board of Directors

If you wish to communicate with our Board, independent directors and committees of our Board, you may send your communication in writing to Paul J. Brody, the Secretary of the Company, at Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, CT 06830. You must include your name and address in the written communication and indicate whether you are a stockholder of the Company.

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The Secretary will compile all communications, summarize lengthy, repetitive or duplicative communications and forward them to the appropriate director(s) or committee(s) of our Board. The Secretary will not forward non-substantive communications or communications that pertain to personal grievances, but instead will forward them to the appropriate department within the Company for resolution. If this is the case, the Secretary will retain a copy of such communication for review by any director or committee upon his, her or its request.

Compensation Discussion and Analysis

Compensation Philosophy and Objectives

We adhere to the philosophy that compensation of our executive officers should first and foremost be directly and materially linked to each executive officer's individual performance and our overall performance. The objectives of our executive compensation program are (1) to enhance our long-term value, (2) to assist us in attracting and retaining high quality talent, (3) to reward past performance and motivate future performance and (4) to align executive officers' long-term interests with those of our stockholders.

Role of Executive Officers in Compensation Decisions

Employee performance is reviewed and compensation changes are recommended to IBG LLC's Chairman and Chief Executive Officer by members of the IBG LLC steering committee. The Chairman and Chief Executive Officer ultimately determines compensation for all employees and is significantly involved in all aspects of executive compensation, including his own executive compensation, as Chairman of our Compensation Committee. Our Compensation Committee is responsible for overseeing the implementation of our philosophy and objectives with respect to the compensation of our executive officers and directors and administering all aspects of our compensation and benefit plans and programs. The Compensation Committee is currently comprised of Messrs. Peterffy and Nemser. As a controlled company, we are not required by the NASDAQ Global Select Market to have a compensation committee composed entirely of independent directors.

Setting Executive Compensation

Historically, we have kept base salaries at a relatively modest level in comparison to salaries paid to senior executives at many other companies in our industry and have not sought to "benchmark" salaries to those of our competitors. We have not utilized the services of a compensation consultant to date. We leave decisions as to these matters to our Compensation Committee.

We compensate our executive officers through three primary sources: base pay, annual cash bonuses and equity incentives. Using this approach, the base salary portion of the compensation of our executive officers is fixed; however, a substantial additional portion of total compensation is variable. This practice ensures that our executive compensation packages include a combination of base pay and incentives that are appropriate and competitive in the relevant marketplace, as well as related to the individual's performance and our performance. Our executive officers have an average of 30 years tenure with us.

Our compensation program is designed to reward performance by tying a substantial portion of each executive officer's total potential compensation to individual performance and our performance. We evaluate individual and company performance in a qualitative fashion; we do not utilize specific financial or operating performance goals or targets in setting executive compensation. Through our practice of granting equity awards, the compensation program also promotes and rewards an executive officer's tenure and longevity with us, as well as the executive officer's role in our financial performance.

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We do not utilize a set formula for allocating compensation among the elements of total compensation. The subjective decisions regarding the amount and mix of elements which comprise the compensation awarded to the executive officers are principally based upon an assessment of each executive's leadership, performance and contribution to the achievement of our financial goals, as well as subjective judgments about each executive officer individually, rather than on rigid guidelines or formulas. Key factors include the executive officer's performance; the nature, scope and level of the executive officer's responsibilities; and the executive officer's contribution to our overall financial results. The compensation of the executive officers who have the greatest ability to influence our performance is predominately performance-based, which is consistent with the overall compensation philosophy as described above. The decisions concerning specific base compensation elements and the total compensation paid or awarded to our executive officers in fiscal year 2015 were made within this framework. Specific individual and/or company performance goals or targets were not used. In fiscal year 2015, the aggregated base salaries of our Named Executive Officers ("NEOs") constituted approximately 18% of their total aggregated compensation, bonuses constituted approximately 31%, and equity-based grants (as described below) constituted the remaining 51%. We granted $7,205,000 worth of awards in connection with the Company's 2007 Stock Incentive Plan ("Stock Incentive Plan") as part of their 2015 compensation. The individual allocations of compensation vary considerably from year to year.

We believe that these practices provide our executive officers with incentives that are aligned with our conservative risk management policies. A substantial portion of executive compensation is in the form of long-term equity incentive awards, which include vesting periods and forfeiture conditions. These are designed not only to encourage long-term performance, but also to minimize the type of short-term risk-taking that might contravene our risk management policies. Our approach to compensation complements our practices of real-time risk assessment and daily measurement of financial performance in the various parts of its businesses, which also act as disincentives to excessive risk-taking.

Elements of Compensation

Although our senior executive officers and other key employees holding ownership interests in Holdings have benefited from the increased value of their ownership interests, they have historically received salary and performance-based bonuses and we expect to continue compensating them in this form. We believe that in order to attract and retain highly effective people we must maintain a flexible compensation structure, including base salary, cash bonuses and equity-based compensation awards as described below. As stated above, we do not utilize a specific formula for allocating compensation among the various elements of total compensation. The relative amounts of bonus and equity-based compensation were determined at the discretion of our Chairman and Chief Executive Officer. Historically, Mr. Peterffy has taken no bonus or long-term incentives as he believes that his and his affiliates' approximate 88.7% ownership of Holdings which, in turn, owns approximately 84.3% of IBG LLC, has provided sufficient incentive to align his interests with those of our common stockholders.

Base Salary.    Base pay is structured to ensure that our executive officers are fairly and equitably compensated. Base pay is used to appropriately recognize and reward the experience and skills that employees bring to us and provides motivation for career development and enhancement. Base pay is designed to ensure that all employees continue to receive a basic level of compensation that reflects any acquired skills that are competently demonstrated and are consistently used at work.

Base pay for our executive officers is initially established based on the scope of their responsibilities and the applicable competitive market compensation paid by other companies for similar positions and is reviewed annually after employment. A single base salary level is established each year, applicable to all senior executive officers except our Chairman and Chief Executive Officer and our Vice Chairman.

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Because executive officers are partially and, sometimes, substantially compensated through the appreciation in their equity ownership, the base salary is kept at a relatively modest level in comparison to salaries generally believed to be paid to senior executives at many other firms in our industry. An executive officer's base pay is not dependent upon our achievement of performance goals.

Bonuses.    We maintain an executive cash bonus program to reward superior individual and financial performance for the year. Each year, an executive cash bonus pool is established, from which we pay annual cash bonuses to our executive officers upon the direction of our Chairman and Chief Executive Officer. The amount of the pool is based on several factors, including the financial performance of the Company, our progress toward our strategic goals and the competitive environment for experienced executives. Executive bonuses are based on individual performance and on the financial performance of the company, measured in a qualitative fashion. Specific individual and/or company performance goals or targets have historically not been used. Cash bonuses awarded to our executive officers in December 2015 for fiscal year 2015 performance ranged from 0% to approximately 500% of the executive officer's 2015 base salary, amounting to an aggregate payout of $4,340,000. Our Chairman and Chief Executive Officer did not take a bonus in accordance with historical practices. The annual bonuses paid to our other executive officers for fiscal year 2015 performance are shown below in the Summary Compensation Table.

Long-Term Incentives.    We utilize long-term equity incentive awards to promote the success of each executive officer, motivate outstanding performance and encourage and reward employment longevity. Prior to our Initial Public Offering (the "IPO"), senior executive officers and other key employees had historically been granted equity ownership interests in IBG LLC and continue to hold such interests through their ownership of membership interests in Holdings.

We believe that compensation paid to executive officers should be closely aligned with our performance on a continuing and long-term basis and, thereby, with the interests of our stockholders. Toward this end, the Stock Incentive Plan provides for the granting of restricted stock units, which under the current terms gives rise to the issuance of Common Stock over approximately a six-year vesting schedule and subject to continued employment. Since the inception of the Stock Incentive Plan, it has been our practice to make dividend equivalent payments on unvested Awards in line with our Common Stock. It is not currently anticipated that we will grant, as part of executive compensation, stock appreciation rights or other forms of non-cash compensation except pursuant to the employee incentive plan described below.

Pursuant to policies set by our Compensation Committee, salary increases, bonuses and stock grants shall be awarded annually, following an evaluation of the individual's and the Company's performance for the year.

Compensation for Executive Officers During 2015

Historically Mr. Peterffy, our Chairman and Chief Executive Officer, has ultimately determined compensation for all employees. Mr. Peterffy has traditionally set his own compensation as salary, capped at 0.2% of IBG LLC's net income. During 2015, Mr. Peterffy was paid a salary of $800,000 by IBG LLC and no bonus in accordance with historical practices. With the intention to set a salary level safely below the cap as calculated for 2015, during 2016, Mr. Peterffy will be paid a salary of $800,000 by IBG LLC. We believe that the ownership by Mr. Peterffy and affiliates, through ownership in Holdings, of a significant amount of the equity in IBG LLC aligns his interests with those of our common stockholders.

Mr. Nemser's compensation has historically included significantly lower overall compensation than the other executive officers, befitting the fact that Mr. Nemser works less than full-time with us, but his compensation has been mainly in salary and a relatively small long-term incentive grant. Mr. Peterffy has made this determination based on the assessments described above under "Setting Executive

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Compensation." During 2015, Mr. Nemser was paid a salary of $555,000 by IBG LLC and no bonus in accordance with these practices. Mr. Nemser also received an award of $285,000 of restricted stock units under our Stock Incentive Plan in 2015. During 2016, Mr. Nemser will be paid a salary of $555,000 by IBG LLC.

Messrs. Galik and Brody and Dr. Thomas A. J. Frank, the Company's Executive Vice President and Chief Information Officer, have historically been compensated in accordance with the policies discussed above under "Setting Executive Compensation" with a mixture of salary, bonus and long-term incentives. Their 2015 base salary was $420,000, and each received an individual performance-based bonus. In addition to performance evaluations, consideration was given to the benefits derived from each individual's existing ownership of membership interests in Holdings. Messrs. Galik and Brody and Dr. Frank received awards under our Stock Incentive Plan valued at $3,850,000, $2,220,000 and $850,000, respectively, for the year ended December 31, 2015.

The contributions of each of our NEOs that the Compensation Committee considered included: Mr. Brody made ongoing efforts with respect to building and maintaining strong financial and operational controls, a prudent liquidity program, banking relationships, credit ratings and interaction with domestic and foreign financial regulators. Dr. Frank continued to enhance the Company's risk management and global technical infrastructure. Mr. Galik took on greater responsibility in his first full year as President and continued to play a key role in the development of software and systems for our electronic brokerage platform, driving our growth in this segment, as well as for our market making business. Mr. Galik's performance and contribution to the achievement of the Company's financial goals, as well as his role as President, merited a higher bonus in 2015 than the other executive officers of the Company, including Mr. Brody and Dr. Frank, in the determination of the Compensation Committee. Their 2016 base salary has been increased to $430,000. Each of Messrs. Galik and Brody and Dr. Frank is expected to receive an award under our Stock Incentive Plan in 2016 based on each executive officer's anticipated future contribution to our success. The 2015 stock awards were consistent with the above-mentioned policies and reflected the Compensation Committee's assessment of each executive's leadership, performance and contribution to the building of our company.

All salaries and bonuses will be paid by IBG LLC or one of its operating subsidiaries. No employee of IBG LLC will be paid any separate or additional amount for their services as employees of the Company. In addition to the foregoing, each of the executive officers, as a result of their ownership of membership interests in Holdings, received indirect distributions from IBG LLC in part for the purpose of funding their income taxes due on their proportionate share of Holdings' proportionate share of IBG LLC's taxable income.

401(k) Plan

We offer substantially all employees of our U.S. based subsidiaries who have met minimum service requirements the opportunity to participate in a defined contribution retirement plan qualifying under the provisions of Section 401(k) of the Internal Revenue Code (the "Code"). The general purpose of this plan is to provide employees with an incentive to make regular savings in order to provide additional financial security during retirement. The plan provides for IBG LLC to match 50% of the employees' pretax contribution, up to a maximum of 10% of eligible earnings. Employees are vested in the matching contribution incrementally over six years.

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Severance Arrangements

None of our senior executive officers have employment agreements and none are subject to severance arrangements. A portion of our NEOs' equity ownership in us is in the form of Holdings membership interests. The Holdings operating agreement provides that if at any time a member's employment with us is terminated for any reason (other than such employee's death or as determined by the managing member of Holdings, such employee's disability, retirement or termination without cause), any non-vested Holdings membership interests held by such employee on the date of termination that remain subject to restriction shall be forfeited to Holdings. Similarly, with regard to grants of restricted stock under the Stock Incentive Plan, a portion of the shares of restricted stock for which restrictions are still applicable may under certain conditions be immediately forfeited upon the termination of employment for any reason.

Perquisites

Our senior executive officers receive only the fringe benefits normally provided to all other employees, such as health, dental, life, hospitalization, surgical, major medical and disability insurance, participation in our 401(k) plan, paid time off, and other similar company-wide benefits which may be in effect from time to time for all other employees. Other than the standard employee benefits, we do not provide additional perquisites, personal direct or indirect benefits, or use any separate set of standards in determining the benefits for our executive officers. We believe that our base pay and total compensation package are reasonable and competitive in the industry, and we have demonstrated that we are able to hire and retain talented executives without offering additional perquisites.

It is our philosophy that each executive officer may determine, within the limits of his or her own compensation, whether or not to personally purchase non-reimbursable luxury travel, private flights, housing, security systems, car service, club memberships, financial planning services, or other such goods and services, including those which are sometimes provided as executive perquisites by other companies, but not offered by us. This is consistent with our general operating principles.

Accounting for Stock-Based Compensation

The Company follows Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, "Compensation—Stock Compensation" ("ASC Topic 718"), to account for its stock-based compensation plans. ASC Topic 718 requires all share-based payments to employees to be recognized in the financial statements using a fair value-based method. The fair value of awards granted to employees are generally expensed as follows: 50% in the year of grant in recognition of plan forfeiture provisions (described below) and the remaining 50% over the related vesting period utilizing the "graded vesting" method permitted under ASC Topic 718. In the case of "retirement eligible" employees (those employees older than 59), 100% of awards are expensed when granted.

Awards granted under the stock-based compensation plans are subject to forfeiture in the event an employee ceases employment with the Company. The plans provide that employees who discontinue employment with the Company without cause and continue to meet the terms of the plans' post-employment provisions will forfeit 50% of unvested previously granted awards unless the employee is over the age of 59, in which case the employee would be eligible to receive 100% of unvested awards previously granted.

We have never issued stock options to our employees.

Advisory Vote on Executive Compensation

At the 2011 Annual Meeting, pursuant to Section 14A of the 1934 Act, we submitted a proposal to stockholders for a (nonbinding) advisory vote to approve the compensation of our NEOs as disclosed in

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the Proxy Statement for the 2011 Annual Meeting. This advisory vote on executive compensation, commonly known as a "say-on-pay" proposal, gives our stockholders the opportunity to express their views on the compensation of our NEOs. This vote is not intended to address any specific item of compensation, but rather the overall compensation of our NEOs and the principles, policies and practices described in this proxy statement. Our stockholders approved this proposal with more than 99% of the total votes cast voting in favor.

At the 2011 Annual Meeting, we also asked our stockholders to indicate if we should hold an advisory vote on the compensation of our NEOs every one, two or three years, with our board of directors recommending an advisory vote every two years. At our 2011 Annual Meeting more than 94% of the total votes cast were in favor of an advisory vote every two years. At the 2015 Annual Meeting, stockholders approved, on an advisory basis, the compensation of our NEOs. In accordance with the two-year schedule, we will be asking our stockholders to approve, on an advisory basis, the compensation of our NEOs as disclosed in this Proxy Statement for the 2017 Annual Meeting.

Executive Compensation

Summary Compensation Table

The following table summarizes the compensation of our NEOs for the fiscal years ended December 31, 2015, 2014 and 2013. Our NEOs are our Chief Executive Officer, Vice Chairman, President, Chief Financial Officer and the other most highly compensated executive officer as determined by their total compensation in the table below.

Name and Principal Positions
  Year   Salary(1)   Bonus   Stock
Awards(2)
  All Other
Compensation(3)
  Total  
 
   
  (in dollars)
 

Thomas Peterffy

    2015   $ 800,000               $ 800,000  

Chairman and Chief Executive

    2014   $ 800,000               $ 800,000  

Officer

    2013   $ 1,350,000               $ 1,350,000  

Earl H. Nemser

   
2015
 
$

555,000
   
 
$

285,000
       
$

840,000
 

Vice Chairman and Director

    2014   $ 540,000       $ 270,000       $ 810,000  

    2013   $ 530,000       $ 250,000       $ 780,000  

Milan Galik

   
2015
 
$

420,000
 
$

2,100,000
 
$

3,850,000
   
 
$

6,370,000
 

President and Director

    2014   $ 400,000   $ 2,100,000   $ 3,300,000       $ 5,800,000  

    2013   $ 380,000   $ 2,000,000   $ 3,000,000       $ 5,380,000  

Paul J. Brody

   
2015
 
$

420,000
 
$

1,700,000
 
$

2,220,000
   
 
$

4,340,000
 

Chief Financial Officer, Treasurer,

    2014   $ 400,000   $ 1,600,000   $ 2,100,000       $ 4,100,000  

Secretary and Director

    2013   $ 380,000   $ 1,500,000   $ 2,000,000       $ 3,880,000  

Thomas A. J. Frank

   
2015
 
$

420,000
 
$

540,000
 
$

850,000
   
 
$

1,810,000
 

Executive Vice President and Chief

    2014   $ 400,000   $ 520,000   $ 820,000       $ 1,740,000  

Information Officer

    2013   $ 380,000   $ 500,000   $ 800,000       $ 1,680,000  

(1)
Mr. Peterffy's salary is capped at 0.2% of IBG LLC's net income. As a result, his salary in 2014 and 2013 was reduced by approximately $145,000, and $337,000, respectively.

(2)
The amounts shown as stock awards in the Summary Compensation Table represent the fair value granted for 2015, 2014 and 2013, respectively, in connection with the Stock Incentive Plan awarded to NEOs in accordance with ASC Topic 718. For information on fair value related to our Stock Incentive Plan, refer to Notes 2 and 11 to our consolidated financial statements filed with the Annual Report on Form 10-K for the year ended December 31, 2015.

(3)
IBG LLC operates in the form of a limited liability company. The amounts in the Summary Compensation Table do not include distributions received by each named executive officer from Holdings relating to

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Grants of Plan Based Awards Table

The following table provides information on shares of Common Stock granted to each of our NEOs, under the Stock Incentive Plan during the year ended December 31, 2015. This table sets forth information regarding shares granted to our NEOs for performance in 2015.

Name
  Grant
Date
  All Other
Stock Awards
Number of Shares(2)
  Grant Date
Fair Value
of Stock Award(3)
 

Thomas Peterffy(1)

    12/31/2015          

Earl H. Nemser

    12/31/2015     6,632   $ 285,000  

Milan Galik

    12/31/2015     89,579   $ 3,850,000  

Paul J. Brody

    12/31/2015     51,654   $ 2,220,000  

Thomas A. J. Frank

    12/31/2015     19,778   $ 850,000  

(1)
Historically, Mr. Peterffy has taken no bonus or long-term incentives as he believes that the approximate 88.7% ownership of Holdings by himself and his affiliates has provided sufficient incentive to align his interests with those of IBG LLC and our common stockholders. As a result Mr. Peterffy was not granted shares under the Stock Incentive Plan for the year ended December 31, 2015.

(2)
The number of shares for the December 31, 2015 grant was determined using a price of $42.9789 per share.

(3)
The amounts shown as stock awards represent the fair value granted for 2015 in connection with the Stock Incentive Plan awarded to NEOs in accordance with ASC Topic 718. For information on fair value related to our Stock Incentive Plan, refer to Notes 2 and 11 to our consolidated financial statements filed with the Annual Report on Form 10-K.

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Outstanding Equity Awards at Fiscal Year End Table

The following table sets forth outstanding equity awards (unvested restricted shares of Common Stock) as of December 31, 2015.

Name
  Number of
Shares
not Vested(1)(3)
  Market Value of
Shares
not Vested(2)
 

Thomas Peterffy

         

Earl H. Nemser

    50,838   $ 2,216,537  

Milan Galik

    621,508   $ 27,097,749  

Paul J. Brody

    368,583   $ 16,070,219  

Thomas A. J. Frank

    167,481   $ 7,302,172  

(1)
The outstanding shares as of December 31, 2015 are subject to the Stock Incentive Plan vesting schedule. The vesting schedule for the above awards is detailed in the following table:

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    Name         Shares       Vesting Schedule    
              2,232       The award is scheduled to vest on 5/9/2016    
 
              4,533       The award is scheduled to vest in 2 equal installments on 5/9/2016 and 5/9/2017    
 
              10,378       The award is scheduled to vest in 3 equal installments on 5/9/2016, 5/9/2017 and 5/9/2018    
 
    Earl H. Nemser         10,793       The award is scheduled to vest in 4 equal installments on 5/9/2016, 5/9/2017, 5/9/2018 and 5/9/2019    
 
              7,683       The award is scheduled to vest in 5 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/8/2019 and 5/8/2020    
 
              8,587       The award is scheduled to vest in 6 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020 and 5/9/2021    
 
              6,632       10% of the award is scheduled to vest on 5/9/2016 and the rest in 6 equal installments on 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020, 5/9/2021 and 5/9/2022    
              30,037       The award is scheduled to vest on 5/9/2016    
 
              52,303       The award is scheduled to vest in 2 equal installments on 5/9/2016 and 5/9/2017    
 
              107,844       The award is scheduled to vest in 3 equal installments on 5/9/2016, 5/9/2017 and 5/9/2018    
 
    Milan Galik         144,612       The award is scheduled to vest in 4 equal installments on 5/9/2016, 5/9/2017, 5/9/2018 and 5/9/2019    
 
              92,185       The award is scheduled to vest in 5 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/8/2019 and 5/8/2020    
 
              104,948       The award is scheduled to vest in 6 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020 and 5/9/2021    
 
              89,579       10% of the award is scheduled to vest on 5/9/2016 and the rest in 6 equal installments on 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020, 5/9/2021 and 5/9/2022    
              12,015       The award is scheduled to vest on 5/9/2016    
 
              27,895       The award is scheduled to vest in 2 equal installments on 5/9/2016 and 5/9/2017    
 
              62,441       The award is scheduled to vest in 3 equal installments on 5/9/2016, 5/9/2017 and 5/9/2018    
 
    Paul J. Brody         86,336       The award is scheduled to vest in 4 equal installments on 5/9/2016, 5/9/2017, 5/9/2018 and 5/9/2019    
 
              61,457       The award is scheduled to vest in 5 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/8/2019 and 5/8/2020    
 
              66,785       The award is scheduled to vest in 6 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020 and 5/9/2021    
 
              51,654       10% of the award is scheduled to vest on 5/9/2016 and the rest in 6 equal installments on 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020, 5/9/2021 and 5/9/2022    
              8,582       The award is scheduled to vest on 5/9/2016    
 
              17,435       The award is scheduled to vest in 2 equal installments on 5/9/2016 and 5/9/2017    
 
              32,172       The award is scheduled to vest in 3 equal installments on 5/9/2016, 5/9/2017 and 5/9/2018    
 
    Thomas A. J. Frank         38,852       The award is scheduled to vest in 4 equal installments on 5/9/2016, 5/9/2017, 5/9/2018 and 5/9/2019    
 
              24,583       The award is scheduled to vest in 5 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/8/2019 and 5/8/2020    
 
              26,079       The award is scheduled to vest in 6 equal installments on 5/9/2016, 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020 and 5/9/2021    
 
              19,778       10% of the award is scheduled to vest on 5/9/2016 and the rest in 6 equal installments on 5/9/2017, 5/9/2018, 5/9/2019, 5/8/2020, 5/9/2021 and 5/9/2022    
(2)
The market value for unvested shares is based on the closing price of the Common Stock as of December 31, 2015, which was $43.60, and is rounded to the nearest dollar.

(3)
All participants in the Company's Stock Incentive Plan are eligible to receive dividend equivalent payments on their unvested shares.

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Stock Vested Table

The following table contains information about stock awards that have vested during the year ended December 31, 2015.

Name
  Number of Shares
Acquired on Vesting
  Value Realized
on Vesting(1)
 

Earl H. Nemser

    15,320   $ 530,072  

Milan Galik

    184,494   $ 6,383,492  

Paul J. Brody

    98,949   $ 3,423,635  

Thomas A. J. Frank

    50,769   $ 1,756,607  

(1)
The value realized is based on the closing price of the Common Stock on the vesting date, May 8, 2015, of $34.60.

Executive Employment Agreements

Historically, we have not entered into employment agreements with our executive officers, and we do not plan on entering into employment agreements at this time. We do maintain non-disclosure, non-competition and non-solicitation agreements currently in effect between our subsidiaries and our officers and other employees.

Stock Incentive Plan

Under the Stock Incentive Plan up to 30 million shares of Common Stock may be granted and issued to directors, officers, employees, contractors and consultants of the Company and its subsidiaries. The purpose of the Stock Incentive Plan is to promote the Company's long-term financial success by attracting, retaining and rewarding eligible participants.

As a result of the Company's organizational structure as described in the "Business—Our Organizational Structure" in Part 1, Item1 of our Annual Report on Form 10-K for the year ended December 31, 2015, there is no dilutive effect upon ownership of minority shareholders of issuing shares under the Stock Incentive Plan. The issuances do not dilute the book value of the ownership of minority shareholders because a) the restricted stock units are granted at market value and b) upon their vesting and the related issuance of shares of Common Stock, the ownership of the Company in its operating subsidiary, IBG LLC, increases proportionately to the shares issued. As a result of such proportionate increase in share ownership, the dilution upon issuance of Common Stock is borne by IBG LLC's majority shareholder (i.e., noncontrolling interest), Holdings, and not by the Company or its minority shareholders. Additionally, dilution of earnings that may take place after issuance of Common Stock is reflected in the earnings per share ("EPS") reported in the Company's financial statements. The EPS dilution can neither be estimated nor projected, but based upon historical experience, would not be expected to be material.

The Stock Incentive Plan is administered by our Compensation Committee. The Compensation Committee has discretionary authority to determine which employees will be eligible to participate in the Stock Incentive Plan. The Compensation Committee establishes the terms and conditions of the awards under the Stock Incentive Plan, including the number of awards offered to each employee and all other terms and conditions applicable to such awards in individual grant agreements. Awards are generally made through grants of Common Stock. The Stock Incentive Plan provides that awards will be subject to issuance over time and may be forfeited upon an employee's termination of employment or violation of certain applicable covenants prior to issuance, unless determined otherwise by our Compensation Committee.

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The Stock Incentive Plan provides that, upon a change in control, our Compensation Committee may, at its discretion, fully vest any granted but unissued shares of Common Stock awarded under the Stock Incentive Plan, or provide that any such granted but unissued shares of Common Stock will be honored or assumed, or new rights substituted thereof by the new employer on a substantially similar basis and on terms and conditions substantially comparable to those of the Stock Incentive Plan.

We generally grant awards on or about December 31 of each year, to specific employees as part of an overall plan of equity compensation. We granted awards of 1,199,079 in 2015 under the Stock Incentive Plan.

Under applicable tax law, we are required to withhold an amount based on the value of the shares upon their issuance, and remit the withheld amount to the Internal Revenue Service ("IRS") and other taxing authorities. To effect that withholding, we may redeem a portion of the shares with an aggregate fair market value equal to the amount of taxes we are required to withhold and remit. For instance, if 1,000 shares would become issuable and we were required to withhold for federal taxes an amount equal to 40% of the value, we would redeem 400 shares and the employee would reclaim 600 shares. The source of funds for the amount to be remitted to the IRS would be a redemption by IBG LLC of a corresponding number of our interests in IBG LLC. Alternatively, we may elect to effect the withholding by facilitating the sale of a portion of the shares, on behalf of employees, in the open market, and the proceeds of such sales would be remitted to the IRS and other taxing authorities.

Shares granted under the Stock Incentive Plan may become subject to forfeiture in the event an employee ceases employment with the Company. The plans provide that employees who discontinue employment with the Company without cause and continue to meet the terms of the plans' post-employment provisions will forfeit 50% of unvested previously granted shares unless the employee is over the age of 59, in which case the employee would be eligible to receive 100% of unvested shares previously granted. Distributions of remaining shares granted before December 31, 2009 to former employees will occur within 90 days of the anniversary of the termination of employment date over a five (5) year vesting schedule, 12.5% in each of the first four years and 50% in the fifth year. Distributions of remaining shares granted on or after December 31, 2009 to former employees will occur over the remaining vesting schedule applicable to each grant.

ROI Unit Stock Plan

Under the Interactive Brokers Group, Inc. 2007 ROI Unit Stock Plan (the "ROI Unit Stock Plan"), certain of our employees who held ROI Dollar Units, at the employee's option, elected to invest their ROI Dollar Unit accumulated earnings as of December 31, 2006 in shares of Common Stock. An aggregate of 1,271,009 shares of Common Stock (consisting of 1,250,000 shares issued under the ROI Unit Stock Plan and 21,009 shares under the Stock Incentive Plan), were granted in 2007. No additional shares of Common Stock are available for issuance under the ROI Unit Stock Plan. Provisions governing tax withholding and forfeitures for the Stock Incentive Plan, described above, apply equally to the ROI Unit Stock Plan.

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Compensation of Directors

The following table contains information regarding 2015 compensation of our non-employee directors with respect to their Board service.

Director
  Fees Earned
or Cash Paid
  Stock Awards   All Other
Compensation(1)
  Total  

Lawrence E. Harris

  $ 125,000           $ 125,000  

Hans R. Stoll

  $ 100,000           $ 100,000  

Richard J. Gates

  $ 100,000           $ 100,000  

Wayne H. Wagner

  $ 100,000           $ 100,000  

(1)
The amounts in the Compensation of Directors Table do not include dividend equivalent payments on unvested shares, under the terms of our Stock Incentive Plan, paid to our directors. Mr. Gates and Mr. Wagner received approximately $1,316 and $1,029, respectively, in dividend equivalent payments with respect to the year ended December 31, 2015.

Our policy is not to pay director compensation to directors who are also our employees. All of our directors are entitled to receive reimbursement of their out-of-pocket expenses in connection with their travel to and attendance at meetings of our Board or committees thereof. Under our current policy, each non-employee director is compensated with an annual retainer of $100,000 and a one-time grant of restricted stock on December 31 in the year of appointment (valued at $75,000, the number of shares granted is based on the fair market price of the Common Stock on the date of grant), subject to straight-line vesting over a five year period, and non-employee chairmen of committees of our Board are compensated with an additional annual retainer of $25,000 per committee. We reserve the right to change the manner and amount of compensation to our non-employee directors at any time. Shares granted under the Stock Incentive Plan to non-employee directors carry the same forfeiture provisions as those granted to employees, which are described above.

Beneficial Ownership of Directors, Executive Officers and Owners of More Than Five Percent

Holdings currently holds, through its ownership of all of the outstanding shares of our Class B Common Stock, approximately 84.3% of the combined voting power of the outstanding shares of our common stock. While our Class B Common Stock is owned by Holdings, Mr. Peterffy, through his ownership of the voting membership interests in Holdings, is able to exercise control over all matters requiring the approval of our stockholders, including the election of our directors and the approval of significant corporate transactions.

The following table sets forth the beneficial ownership of Common Stock as of March 9, 2016 by each of our directors and NEOs, by all our directors and executive officers as a group, and of each beneficial owner, who is not our director or officer, of more than 5% of Common Stock as of December 31, 2015.

The amounts and percentages of Common Stock beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or to direct the voting of such security, or investment power, which includes the power to dispose of or to direct the disposition of such security and if that person has the right to acquire such security within 60 days of the filing of this proxy. Unless otherwise indicated below, each beneficial owner named in the table below has sole voting and sole investment power with respect to all shares beneficially owned. Because the Holdings membership interests are not directly exchangeable into shares of Common Stock, none of our executive officers and directors may be deemed to own shares of Common Stock except as set forth below. Mr. Peterffy may be deemed to

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own all of the shares of Class B Common Stock. The following table is based on 63,985,335 shares of Common Stock and 100 shares of Class B Common Stock outstanding as of March 9, 2016:

Name and Address
  Class A
Common
Stock
Owned
   
  Class B
Common Stock
Owned
   
 
 
  (in shares and %)
 

IBG Holdings LLC**(1)

    0     0 %   100     100 %

Thomas Peterffy**(2)

    0     0 %   100     100 %

Earl H. Nemser**(3)

    66,251     * %   0     0 %

Milan Galik**(3)

    368,247     * %   0     0 %

Paul J. Brody**(3)

    355,669     * %   0     0 %

Thomas A. J. Frank**(3)

    210,434     * %   0     0 %

Lawrence E. Harris**

    62,321     * %   0     0 %

Hans R. Stoll**

    4,193     * %   0     0 %

Richard Gates**

    13,289     * %   0     0 %

Wayne H. Wagner**

    514     * %   0     0 %

All current directors and executive officers as a group (9 persons)

    1,080,918     1.69 %   100     100 %

Kylin(4)

    4,621,815     7.22 %   0     0 %

Vanguard(5)

    4,416,596     6.90 %   0     0 %

Blackrock(6)

    4,390,272     6.86 %   0     0 %

Teton(7)

    3,218,013     5.03 %   0     0 %

*
Less than 1%

**
Address is c/o Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, Connecticut 06830

(1)
Holdings, as the sole holder of the 100 outstanding shares of Class B Common Stock, is entitled to the number of votes equal to the number of IBG LLC membership interests held by it at any given time. The Class B Common Stock has approximately 84.3% of the voting power of the Company, which percentage will decrease proportionately to the extent that Holdings owns a smaller percentage of IBG LLC. Except as otherwise provided by law or our amended and restated certificate of incorporation, shares of Common Stock and the Class B Common Stock vote together as a single class.

(2)
Mr. Peterffy, through his ownership of the voting membership interests in Holdings, beneficially owns all of the outstanding shares of Class B Common Stock.

(3)
The amounts in the table reflect the issued and vested portion of the restricted shares of Common Stock that were granted to Messrs. Nemser, Galik and Brody and Dr. Frank under the Company's Stock Incentive Plan, less any shares sold for withholding tax purposes or through market transactions. Please refer to the Outstanding Equity Awards at Fiscal Year End Table for a vesting schedule of each of these grants. Also included are shares which will vest within 60 days of the filing of this proxy statement:

 
  Shares
Directly
Owned
  Shares
Vesting
Within
60 Days
  Total
shares*
 

Earl H. Nemser

    51,965     14,286     66,251  

Milan Galik

    195,072     173,175     368,247  

Paul J. Brody

    258,722     96,947     355,669  

Thomas A. J. Frank

    161,458     48,976     210,434  

*
Represents total shares beneficially owned as defined by rule 13d-3(d)(1) of the 1934 Securities Exchange Act.

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(4)
According to Schedule 13G filed on February 16, 2016, Kylin Management LLC, with its address at 366 Madison Avenue, 16th Floor, New York NY 10017, beneficially owned 4,621,815 shares of Common Stock as of December 31, 2015.

(5)
According to Schedule 13G filed on February 10, 2016, The Vanguard Group, with its address at 100 Vanguard Blvd, Malvern, PA 19355, beneficially owned 4,416,596 shares of Common Stock as of December 31, 2015.

(6)
According to Schedule 13G filed on January 22, 2016, BlackRock Inc., with its address at 55 East 52nd St., New York, NY 10022, beneficially owned 4,390,272 shares of Common Stock as of December 31, 2015.

(7)
According to Schedule 13G filed on February 16, 2016, Teton Capital Partners, with its address at 500 West 5th Street, Suite 1110, Austin TX 78701, beneficially owned 3,218,013 shares of Common Stock as of December 31, 2015.

Certain Relationships and Related Transactions

Recapitalization Transactions

Prior to the IPO, our business had been conducted by subsidiaries of IBG LLC, which was approximately 85% owned by Mr. Peterffy and his affiliates. In November 2006, the Company was incorporated as a Delaware corporation. The Recapitalization resulted in the former members of IBG LLC becoming the sole members of Holdings, and established us as the sole managing member of IBG LLC.

Voting

Each share of Common Stock entitles its holder to one vote per share. The Class B Common Stock currently has approximately 84.3% of the voting power of the Company, which percentage will decrease proportionately over time to the extent that Holdings owns a smaller percentage of IBG LLC.

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Mr. Peterffy currently owns all of the voting membership interests in Holdings. Accordingly, Mr. Peterffy beneficially owns all of the outstanding shares of Class B Common Stock and is able to exercise control over all matters requiring the approval of our stockholders, including the election of our directors and the approval of significant corporate transactions.

If at any time in the future Mr. Peterffy and his affiliates own less than a majority of the membership interests in Holdings, then at such time all membership interests in Holdings will become voting membership interests. Accordingly, all members of Holdings, instead of Mr. Peterffy alone, would together direct the voting of the shares of Class B Common Stock, and all such members would together exercise control over all matters requiring the approval of our stockholders. However, even if Mr. Peterffy and his affiliates cease to own a majority of the membership interest in Holdings, Mr. Peterffy could, depending on his level of percentage ownership, continue to effectively control or significantly influence matters requiring approval of stockholders.

Exchange Agreement

Concurrently with the IPO, IBG, Inc. entered into an exchange agreement with Holdings, IBG LLC and the historical members of IBG LLC (the "Exchange Agreement"). Pursuant to this agreement, the historical members of IBG LLC contributed their IBG LLC membership interests to Holdings and received Holdings membership interests in return. The Exchange Agreement provides for future redemptions of member interests and for the purchase of member interests in IBG LLC by IBG, Inc. from Holdings, which could result in IBG, Inc. acquiring the remaining member interests in IBG LLC that it does not own. On an annual basis, holders of Holdings member interests were able to request redemption of such member interests over a minimum eight (8) year period following the IPO; 12.5% annually for seven (7) years and 2.5% in the eighth year. On July 23, 2015 the Exchange Agreement was amended to extend the redemption period past eight (8) years. A copy of the Second Amendment to the Exchange Agreement was filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the Quarterly Period Ended September 30, 2015 filed by the Company on November 9, 2015 and is incorporated herein by reference. The redemption price for the membership interests in Holdings depends on the timing at which the redemption is made.

A copy of the Exchange Agreement was filed as Exhibit 10.3 to the Quarterly Report on Form 10-Q for the Quarterly Period Ended September 30, 2009 filed by the Company on November 9, 2009 and is incorporated herein by reference.

Sales of Common Stock and the application of the net proceeds to acquire IBG LLC membership interests are expected to have a negligible effect on the existing holders of Common Stock, as the holders of Common Stock would then own a larger portion of IBG LLC. Such transactions will have the effect of diluting your percentage ownership in us. However, because we will acquire an increased percentage ownership in IBG LLC over time as a result of such transactions, such transactions will not impact your effective percentage ownership of the economics of the underlying IBG LLC business.

Holdings, with the consent of Mr. Peterffy and our Board, has the right to cause the holders of Holdings membership interests to have all or a portion of their interests redeemed at any time. Such redemptions would be financed in the same manner as the scheduled redemptions described above.

Tax Receivable Agreement

In connection with the IPO, we purchased membership interests in IBG LLC from Holdings for cash. In addition, IBG LLC membership interests held by Holdings may be purchased by us in the future in connection with offerings by us of shares of Common Stock. Our initial purchase of the IBG LLC membership interests will, and the subsequent purchases may, result in increases in the tax basis of the tangible and intangible assets of IBG LLC attributable to our interest in IBG LLC that otherwise would not have been available, although the IRS may challenge all or part of that tax basis increase or our ability to amortize all or part of that increased tax basis, and a court could sustain such a challenge

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by the IRS. These increases in tax basis, if sustained, may reduce the amount of taxable income that we are required to recognize as the result of our ownership of membership interests in IBG LLC in the future.

Concurrently with the IPO, we entered into a tax receivable agreement with Holdings that provides for the payment by us to Holdings of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of these increases in tax basis and of certain other tax benefits related to our entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. We will retain 15% of the projected tax benefits.

If either immediately before or immediately after any purchase or the related issuance of our stock, the Holdings members own or are deemed to own, in the aggregate, more than 20% of our outstanding stock, then all or part of any increase in the tax basis of goodwill may not be amortizable and, thus, our ability to realize the annual tax savings that otherwise would have resulted if such tax basis were amortizable may be significantly reduced. Although the Holdings members are prohibited under the exchange agreement from purchasing shares of Common Stock, grants of our stock to employees and directors who are also members or related to members of Holdings and the application of certain tax attribution rules, such as among family members and partners in a partnership, could result in Holdings members being deemed for tax purposes to own shares of Common Stock.

In order to mitigate the risk to us of an IRS challenge to the tax basis increase, Holdings and its members will indemnify us for any additional taxes we owe if the IRS or other taxing authorities successfully challenge the basis increase. In addition, if the IRS or other taxing authorities successfully challenge the tax basis increase, any subsequent payments we are required to make under the tax receivable agreement will be reduced accordingly.

For purposes of the tax receivable agreement, cash savings in income and franchise tax will be computed by comparing our actual income and franchise tax liability to the amount of such taxes that we would have been required to pay had there been no increase in the tax basis of the tangible and intangible assets of IBG LLC attributable to our acquisition of our interest in IBG LLC, and had we not entered into the tax receivable agreement. The tax receivable agreement will, unless we exercise our right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement, terminate upon the earlier of (i) the end of the taxable year that includes the 50th anniversary of our initial acquisition of membership interests in IBG LLC, or (ii) the end of the taxable year that includes the 16th anniversary of the date upon which all rights of sale and exchange granted under the exchange agreement have terminated.

Our ability to achieve tax benefits from any increase in the tax basis attributable to our interest in IBG LLC resulting from our acquisition of membership interests in IBG LLC and the payments to be made under the tax receivable agreement with respect thereto depend upon a number of factors, including the law as in effect at the time of a purchase by us of membership interests in IBG LLC or a payment under the tax receivable agreement, the timing of purchases, the fair market value of membership interests in IBG LLC at the time of a purchase, the extent to which such purchases are taxable, the impact of the increase in the tax basis on our ability to use foreign tax credits and the rules relating to the amortization of intangible assets, the composition of IBG LLC's assets at the time of a purchase, and the amount and timing of our income and of payments under the tax receivable agreement. Depending upon the outcome of these factors, as a result of the size of the increases in the tax basis of the tangible and intangible assets of IBG LLC and its subsidiaries, the payments that we may make to Holdings could be substantial.

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Legal Representation

Earl H. Nemser, our Vice Chairman and one of our directors, is also Special Counsel to the law firm of Dechert LLP, which has rendered legal services to IBG LLC and us, as applicable, during 2013, 2014 and 2015.

Margin Accounts at Interactive Brokers LLC

Our subsidiary, Interactive Brokers LLC ("IB LLC"), may extend credit in the ordinary course of business to certain of our directors, officers, and their affiliates in connection with margin loans. Such loans (i) are made in the ordinary course of business, (ii) are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to IB LLC, and (iii) do not involve more than the normal risk of collectability or present other unfavorable features.

Indemnification Agreement

Pursuant to the Indemnification Agreement dated October 6, 2015 between the Company and Mr. Peterffy ("Indemnification Agreement"), the Company paid Mr. Peterffy $133,280 in 2015. The payment was in exchange for Mr. Peterffy providing indemnification coverage for the directors and officers of the Company. The Indemnification Agreement was approved by the Audit Committee and the Board.

Review, Approval or Ratification of Transactions with Related Persons

We review all relationships and transactions in which the Company and our directors and executive officers or their immediate family members are participants to determine whether such persons have a direct or indirect material interest. Our Audit Committee, our Chief Executive Officer and the General Counsel of the Company are responsible for the development and implementation of processes and controls to obtain information from the directors and executive officers with respect to related person transactions and for then determining, based on the facts and circumstances, whether the Company or a related person has a direct or indirect material interest in the transaction. In addition, our Nominating and Corporate Governance Committee monitors and reviews any issues regarding the "independence" of directors or involving potential conflicts of interest, and evaluates any change of status or circumstance with respect to a director and determines the propriety of the director's continued service in light of that change.

ITEM 2:    RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Our Audit Committee has selected Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2016. We are submitting the selection of independent registered public accounting firm for stockholder ratification at the Annual Meeting.

A representative of Deloitte & Touche LLP is expected to be present at the Annual Meeting, will have the opportunity to make a statement if he or she desires to do so and will be available to respond to appropriate questions from stockholders.

Our organizational documents do not require that our stockholders ratify the selection of Deloitte & Touche LLP as our independent registered public accounting firm. We are doing so because we believe it is a matter of good corporate practice. If our stockholders do not ratify the selection, our Audit Committee will reconsider whether to retain Deloitte & Touche LLP, but still may retain them. Even if the selection is ratified, our Audit Committee, in its discretion, may change the appointment at any

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time during the year if it determines that such a change would be in the best interests of the Company and its stockholders.

Our Audit Committee approves in advance all audit and any non-audit services rendered by Deloitte & Touche LLP to us and our consolidated subsidiaries.

Fees Paid to Independent Registered Public Accounting Firm

The following table summarizes the aggregate fees for professional services provided by Deloitte & Touche LLP related to the years ended December 31, 2015 and 2014:

 
  2015   2014  
 
  (in dollars)
 

Audit Fees(1)

    2,874,275     2,765,285  

Audit Related Fees(2)

    60,500     180,500  

Tax Fees(3)

    431,854     449,188  

All Other Audit Fees

    30,774     45,097  

  $ 3,397,403   $ 3,440,070  

(1)
Audit Fees services include: (i) the audit of our consolidated financial statements included in the Company's Annual Report on Form 10-K and services attendant to, or required by, statute or regulation; (ii) reviews of the interim condensed consolidated financial statements included in our quarterly reports on Form 10-Q; (iii) comfort letters, consents and other services related to SEC and other regulatory filings; and (iv) accounting consultation attendant to the audit.

(2)
Audit-Related Fees services include: (i) audits of employee benefit plans and (ii) agreed upon procedures engagements.

(3)
Tax Fees services include tax compliance and tax advice. Tax compliance services include non-U.S. federal, state and local income and non-income tax compliance. Tax advice services include: (i) U.S. federal, state and local income and non-income tax advice; and (ii) non-U.S. income and non-income tax advice.

Directors' Recommendation

Our Board unanimously recommends a vote FOR ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2016. Unless a contrary choice is specified, proxies solicited by our Board will be voted FOR ratification of the appointment.


OTHER MATTERS

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our directors and executive officers, and persons who own more than 10% of a registered class of our equity securities, to file reports of ownership of, and transactions in, our equity securities with the SEC. Such directors, executive officers and stockholders are also required to furnish us with copies of all Section 16(a) reports they file. Purchases and sales of our equity securities by such persons are published on our website at www.interactivebrokers.com.

Messrs. Nemser, Galik and Brody and Dr. Frank each filed one late Form 4 related to the sale of shares in which they had a pecuniary interest, in connection with the redemption of Holdings membership interests on July 24, 2015. Certain shares were inadvertently omitted from a filing on

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October 13, 2015. Amended Form 4s were filed upon the discovery of the omission. Other than this occurrence, based on a review of the copies of such reports, and on written representations from our reporting persons, we believe that all Section 16(a) filing requirements applicable to our directors, executive officers and stockholders were complied with during fiscal year 2015.

Other Business

At the date hereof, there are no other matters that our Board intends to present, or has reason to believe others will present, at the Annual Meeting. If other matters come before the Annual Meeting, the persons named in the accompanying form of proxy will vote in accordance with their best judgment with respect to such matters.

Stockholder Proposals for 2017 Annual Meeting of Stockholders

Stockholders who, in accordance with the SEC's Rule 14a-8, wish to present proposals for inclusion in the proxy materials to be distributed by us in connection with our 2017 Annual Meeting of Stockholders must submit their proposals to Paul J. Brody, the Secretary of the Company, at Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, CT 06830, on or before November 15, 2016. As the rules of the SEC make clear, simply submitting a proposal does not guarantee its inclusion.

In accordance with our Bylaws, for a matter not included in our proxy materials to be properly brought before the 2017 Annual Meeting of Stockholders, a stockholder's notice of the matter that the stockholder wishes to present must be delivered to Paul J. Brody, the Secretary of the Company, at Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, CT 06830, not less than 120 days prior to the first anniversary of the date of this Proxy Statement. As a result, any notice given by or on behalf of a stockholder pursuant to these provisions of our Bylaws (and not pursuant to the SEC's Rule 14a-8) must be received no later than November 15, 2016.

Stockholder Recommendations for Director Candidates

Our Nominating and Corporate Governance Committee will consider candidates recommended by stockholders. The policy of our Nominating and Corporate Governance Committee is to consider candidates recommended by stockholders in the same manner as other candidates. See Item 1. Election of Directors for the criteria our Nominating and Corporate Governance Committee utilizes to assess director candidates. Stockholders who wish to submit director candidates for consideration by our Nominating and Corporate Governance Committee for election at our 2017 Annual Meeting of Stockholders may do so by submitting in writing such candidates' names, credentials, contact information and his or her written consent to be considered as a candidate, in compliance with the procedures required by our Bylaws, to Paul J. Brody, the Secretary of the Company, at Interactive Brokers Group, Inc., One Pickwick Plaza, Greenwich, CT 06830, not less than 120 days prior to the first anniversary of the date of this Proxy Statement. As a result, any notice given by or on behalf of a stockholder pursuant to these provisions of our Bylaws must be received no later than November 15, 2016. The proposing stockholder should also include his or her contact information and a statement of his or her share ownership (how many shares owned and for how long). We do not pay any fees to any third parties for assisting us with nominations and evaluations of candidates for director, nor do we obtain such services from third parties.

Important Notice Regarding Delivery of Stockholder Documents

Under SEC rules, a single package of Notices may be sent to any household at which two or more stockholders reside if they appear to be members of the same family. Each stockholder continues to receive a separate Notice within the package. This procedure, referred to as "householding," reduces the volume of duplicative information stockholders receive and reduces mailing expenses. Stockholders may revoke their consent to future householding mailings by contacting our Investor Relations Department at 2 Pickwick Plaza, Greenwich, Connecticut 06830, Attn: Investor Relations, telephone: 203-618-4070, e-mail: investor-relations@interactivebrokers.com.

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If you would like to reduce the costs incurred by our company in mailing proxy 1234567 VOTE BY MAIL 123,456,789,012.12345 TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. The Board of Directors recommends you vote FOR the following: 1. Election of Directors Nominees Thomas Peterffy For 0 0 0 0 0 0 0 0 Yes 0 Against 0 0 0 0 0 0 0 0 No 0 Abstain 0 0 0 0 0 0 0 0 0 1A The Board of Directors recommends you vote FOR the following proposal: 2. Ratification of appointment of independent registered public accounting firm of Deloitte & Touche LLP. For 0 Against 0 Abstain 0 1B Earl H. Nemser 1C Milan Galik 1D Paul J. Brody NOTE: In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting. 1E Lawrence E. Harris 1F Hans R. Stoll 1G Wayne H. Wagner 1H Richard Gates For address change/comments, mark here. (see reverse for instructions) Please indicate if you plan to attend this meeting Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name, by authorized officer. Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date 02 0000000000 1 OF 1 1 2 0000269064_1 R1.0.1.25 SHARES CUSIP # JOB #SEQUENCE # VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 John Sample 234567P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. 1234567 Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. NAME THE COMPANY NAME INC. - COMMON THE COMPANY NAME INC. - CLASS A THE COMPANY NAME INC. - CLASS B THE COMPANY NAME INC. - CLASS C THE COMPANY NAME INC. - CLASS D THE COMPANY NAME INC. - CLASS E THE COMPANY NAME INC. - CLASS F THE COMPA N Y NAME INC. - 401 K CONTROL # SHARES123,456,789,012.12345 123,456,789,012.12345 123,456,789,012.12345 123,456,789,012.12345 123,456,789,012.12345 123,456,789,012.12345 123,456,789,012.12345 x PAGE1 OF 2 INTERACTIVE BROKERS GROUP, INC. ONE PICKWICK PLAZA GREENWICH, CT 06830 Investor Address Line 1 Investor Address Line 2 Investor Address Line 3 Investor Address Line 4 Investor Address Line 5 8 8 8 1 1234 ANYWHERE STREET ANY CITY, ON A1A 1A1 234567 234567 234567 234567

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Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice & Proxy Statement, Annual Report are available at www.proxyvote.com INTERACTIVE BROKERS GROUP, INC. Annual Meeting of Stockholders April 21, 2016 9:30 AM This proxy is solicited by the Board of Directors Thomas Peterffy, Earl H. Nemser and Paul J. Brody, or any of them, each with the power of substitution, are hereby authorized to represent and vote the shares of the undersigned, with all the powers which the undersigned would possess if personally present, at the Annual Meeting of Stockholders of Interactive Brokers Group, Inc. to be held on April 21, 2016 at 9:30 a.m. EDT or at any postponement or adjournment thereof. Shares represented by this proxy will be voted by the stockholder. If no such directions are indicated, the Proxies will have authority to vote FOR all the nominees for Directors and FOR Ratification of Appointment of Independent Registered Public Accounting Firm (Deloitte & Touche LLP). Address change/comments: (If you noted any Address Changes and/or Comments above, please mark corresponding box on the reverse side.) Continued and to be signed on reverse side 0000269064_2 R1.0.1.25

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