Nymex chief quits over pay cut

The decision by Bo Collins to resign as president of Nymex was triggered by the board cutting his compensation package, said a senior source at Nymex.

“The board cut Collins' pay from $1.2 million to $1 million and cut his equity options in half," said the source.

According to the source, a recent and controversial $980 million bid by Parthenon Capital to buy Nymex - a deal that Collins supported but that board members claimed severely undervalued the exchange - opened the board's eyes to the value of Collins' equity options. "[As a result of the Parthenon bid] the board became aware of just how much value was in Bo's equity options,” said the source. “He was getting $20 million – and they are just not used to paying that. It created a lot of anxiety among the old-timers.”

“So they said: ‘We’ll cut his pay, and Bo will still do the job because who wouldn’t want to be president of Nymex?’,” the source added.

Collins resigned on June 4 after three years as president.

Talking to RiskNews' sister publication Energy Risk, Collins said he would not be jumping into anything new immediately. He plans to enjoy the summer on the eastern sea board with his wife and son. “I’m evaluating opportunities that have popped up,” he said. “But I’m desperate to spend some time with my family.”