2023-06-14T11:44:51-05:00 2022-12-31 366055558 GRANT THORNTON LLP 1000 WILSON BOULEVARD SUITE 1500 ARLINGTON VA 22209 990 2022-01-01 520910763 SECURITIES INVESTOR PROTECTION CORPORATION SECU 2023718300 1667 K ST NW 1000 WASHINGTON DC 200061620 JOSEPHINE WANG PRESIDENT AND CEO 2023718300 2023-06-14 1 JOSEPHINE WANG 999009999 0 MARY TORRETTA P00847851 7038477500 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z JOSEPHINE WANG 1667 K ST NW 1000 WASHINGTON DC 200061620 463655966 0 X WWW.SIPC.ORG X 1970 DC SEE SCHEDULE O 7 7 39 0 0 0 0 0 520971678 463655966 0 0 0 0 520971678 463655966 0 0 0 0 13178138 13804319 0 0 0 246789632 116399810 259967770 130204129 261003908 333451837 4382745297 4237761857 715148186 690941499 3667597111 3546820358 X SEE SCHEDULE O 0 0 SIPC INITIATED NO NEW CUSTOMER PROTECTION PROCEEDING IN 2022. TOTAL PROCEEDINGS COMMENCED UNDER SIPC TO DATE ARE 330. IN 2022, 1 PROCEEDING IS BEING PROCESSED AND 1 PROCEEDING HAD CLOSED. CASH AND SECURITIES DISTRIBUTED FOR ACCOUNTS OF CUSTOMERS DURING 2022 TOTALED APPROXIMATELY $167 MILLION. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 21 0 1 39 1 0 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X CHARLES E GLOVER VP-FINANCE 2023718300 1667 K ST NW STE 1000 WASHINGTON DC 200061620 X WILLIAM S JASIEN DIRECTOR 1.00 0.00 X 20000 0 0 CLAUDIA SLACIK CHAIR OF BOARD (BEG 02/22) 3.00 0.00 X 18667 0 0 GREGORY S KARAWAN DIRECTOR (THRU 12/22) 1.00 0.00 X 12000 0 0 ANTHONY D'AGOSTINO DIRECTOR (THRU 05/22) 1.00 0.00 X 7714 0 0 GLEN FUKUSHIMA VICE CHAIR OF BOARD (BEG 04/22) 2.00 0.00 X 5769 0 0 WILLIAM BRODSKY DIRECTOR (BEG 05/22) 3.00 0.00 X 4286 0 0 ALAN J PATRICOF DIRECTOR (BEG 12/22) 1.00 0.00 X 0 0 0 DANIEL M COVITZ DIRECTOR 1.00 0.00 X 0 0 0 W MOSES KIM DIRECTOR 2.00 0.00 X 0 0 0 KENNETH J CAPUTO GENERAL COUNSEL & SEC'Y (THRU 06/22) 40.00 0.00 X 1285317 0 451502 KAREN L SAPERSTEIN VICE PRESIDENT - OPERATIONS 40.00 0.00 X 457015 0 -69604 JOSEPHINE WANG PRESIDENT & CEO 40.00 0.00 X 1063691 0 -701957 MICHAEL L POST GENERAL COUNSEL & SEC'Y (BEG 09/22) 40.00 0.00 X 246059 0 73649 CHARLES E GLOVER VICE PRESIDENT - FINANCE 40.00 0.00 X 624362 0 -968053 ABRAHAM L WONS DIRECTOR-RISK MANAGEMENT 40.00 0.00 X 364858 0 20348 TIMOTHY W TIMANUS ASST. VICE PRES. - OPERATIONS 40.00 0.00 X 314541 0 -86275 CHRISTOPHER H LAROSA SR. ASSOC. GC - LITIGATION 40.00 0.00 X 369921 0 -259522 HEMANT SHARMA DEPUTY GENERAL COUNSEL 40.00 0.00 X 377641 0 -494946 KEVIN H BELL SR. ASSOC. GC - DISPUTE RES 40.00 0.00 X 364053 0 -588555 5535894 0 -2623413 29 0 1 0 INFERNORED TECHNOLOGY INC 125 N MAIN ST SUITE 500 414 BLACKSBURG VA 24060 IT CONSULTING 1466190 SCIENCE APPLICATIONS INTERNATIONAL 12010 SUNSET HILLS ROAD RESTON VA 20190 IT CONSULTING 436444 GRANT THORNTON LLP 1000 WILSON BOULEVARD ARLINGTON VA 22209 ACCOUNTING SERVICES 192754 BUCK GLOBAL LLC 420 LEXINGTON AVE SUITE 2220 NEW YORK NY 10170 ACCOUNTING SERVICES 180446 FIRM ADVICE 9862A MAIN STREET FAIRFAX VA 22031 RECRUITING 127000 6 MEMBER ASSESSMENTS 900099 382258690 382258690 INTR/US GOV SECURITIES 900099 81397276 81397276 463655966 463655966 463655966 0 0 4400253 6780399 365395 1782029 476243 119206 217754 2313 407284 159454 493338 3851950 983293 43307 9177 298763 207732 CUSTOMER PROTECTION 109408826 PERSONNEL RECRUITMENT 135782 BOD EXP AND TRAVEL 26996 TEMPORARY SERVICES 17880 16755 130204129 15823283 2093371 214245064 176584364 11545038 7381490 8032763 7391042 922939 641721 4140208973 4051060911 0 0 4382745297 4237761857 14158423 14731425 4789763 3010074 696200000 673200000 715148186 690941499 X 3667597111 3546820358 0 0 0 0 3667597111 3546820358 4382745297 4237761857 X 333451837 -447552259 -6676331 X 0 1 X 1 0 0 0 0 0 0 0 382258690 SCHEDULE C, PART III-A THE SECURITIES INVESTOR PROTECTION CORPORATION ("SIPC") IS A NON-PROFIT MEMBERSHIP ORGANIZATION CREATED UNDER THE SECURITIES INVESTOR PROTECTION ACT, 15 U.S.C. 78AAA ET SEQ. ("SIPA"). SIPA PROVIDES THAT "SIPC, ITS PROPERTY, ITS FRANCHISE, CAPITAL, RESERVES, SURPLUS, AND ITS INCOME, SHALL BE EXEMPT FROM ALL TAXATION NOW OR HEREAFTER IMPOSED BY THE UNITED STATES OR BY ANY STATE OR LOCAL TAXING AUTHORITY, EXCEPT THAT ANY REAL PROPERTY AND ANY TANGIBLE PERSONAL PROPERTY (OTHER THAN CASH AND SECURITIES) OF SIPC SHALL BE SUBJECT TO STATE AND LOCAL TAXATION TO THE SAME EXTENT ACCORDING TO ITS VALUE AS OTHER REAL AND TANGIBLE PERSONAL PROPERTY IS TAXED." DURING ITS 2022 TAX YEAR, SIPC MADE LOBBYING EXPENDITURES TO AN OUTSIDE FIRM IN THE AMOUNT OF $2,313 0 1519498 1164692 354806 5298131 5276223 21908 1215134 950127 265007 641721 EST COST TO COMPL CUST PROTECTION PROCEEDINGS 673200000 673200000 16103707 -447552259 -447552259 463655966 0 463655966 123527798 -6676331 -6676331 130204129 0 130204129 PART XII, LINE 2D - OTHER ADJUSTMENTS: POST-RETIREMENT BENEFIT RELATED CHANGES OTHER THAN NET PERIODIC PENSION COST -6,676,331. X 1 1 X X X X 0 0 0 KENNETH J CAPUTO GENERAL COUNSEL & SEC'Y (THRU 06/22) 221377 0 994177 0 69763 0 431468 0 20034 0 1736819 0 0 0 KAREN L SAPERSTEIN VICE PRESIDENT - OPERATIONS 353445 0 97389 0 6181 0 -121065 0 51461 0 387411 0 0 0 ABRAHAM L WONS DIRECTOR-RISK MANAGEMENT 289829 0 71219 0 3810 0 -41355 0 61703 0 385206 0 0 0 JOSEPHINE WANG PRESIDENT & CEO 634314 0 425567 0 3810 0 -724432 0 22475 0 361734 0 0 0 MICHAEL L POST GENERAL COUNSEL & SEC'Y (BEG 09/22) 125900 0 120000 0 159 0 67048 0 6601 0 319708 0 0 0 TIMOTHY W TIMANUS ASST. VICE PRES. - OPERATIONS 276351 0 37500 0 690 0 -110224 0 23949 0 228266 0 0 0 PART I, LINE 1A FIRST-CLASS TRAVEL FIRST CLASS TRAIN FARE WAS ALLOWED PURSUANT TO POLICY AND PAID FOR MR. BELL, MR. GLOVER AND MR. SHARMA WHEN IT WAS LESS THAN OR EQUIVALENT TO THE COST OF COACH AIRFARE AND RELATED GROUND TRANSPORTATION. FIRST CLASS AIR FARE WAS ALLOWED PURSUANT TO POLICY FOR MR. BRODSKY. SCHEDULE J, PART II, COLUMN C: RETIREMENT AND OTHER DEFERRED COMPENSATION THE INCREASE OR DECREASE IN ACTUARIAL VALUE OF A DEFINED BENEFIT RETIREMENT AND A DEFINED BENEFIT POST RETIREMENT HEALTH PLAN IS INCLUDED IN SCHEDULE J, PART II, COLUMN (C) AS PART OF RETIREMENT AND OTHER DEFERRED COMPENSATION. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: PROTECTION OF CUSTOMERS OF SIPC MEMBERS PURSUANT TO THE SECURITIES INVESTOR PROTECTION ACT OF 1970. COPY OF 2022 ANNUAL REPORT AVAILABLE ON SIPC'S WEBSITE (WWW.SIPC.ORG). MEMBERS AS OF 12/31/22 IS 3,396. FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: SIPC'S MISSION IS STATUTORY. WHEN A BROKERAGE FIRM IS CLOSED DUE TO BANKRUPTCY OR OTHER FINANCIAL DIFFICULTIES AND CUSTOMER ASSETS ARE MISSING, SIPC STEPS IN AS QUICKLY AS POSSIBLE AND, WITHIN CERTAIN LIMITS, WORKS TO RETURN CUSTOMERS' CASH, STOCK AND OTHER SECURITIES, AND OTHER CUSTOMER PROPERTY. WITHOUT SIPC, INVESTORS AT FINANCIALLY TROUBLED BROKERAGE FIRMS MIGHT LOSE THEIR SECURITIES OR MONEY FOREVER OR WAIT YEARS WHILE THEIR ASSETS ARE TIED UP IN COURT. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS AND STOCKHOLDERS SIPC IS A MEMBERSHIP CORPORATION. MEMBERSHIP IS BY OPERATION OF LAW. FORM 990, PART VI, SECTION A, LINE 7B STOCKHOLDERS OR PERSONS OTHER THAN GOVERNING BODIES NO DECISIONS OF THE GOVERNING BODY ARE SUBJECT TO APPROVAL BY MEMBERS. HOWEVER, PROPOSED RULE CHANGES AND BYLAW CHANGES ARE SUBJECT TO REVIEW AND APPROVAL BY THE U.S. SECURITIES AND EXCHANGE COMMISSION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS THE FORM 990 WAS PREPARED BY GRANT THORNTON, AN INDEPENDENT ACCOUNTING FIRM, WITH SUPPORT FROM THE SIPC ACCOUNTING STAFF, DIRECTED BY THE VICE PRESIDENT - FINANCE, USING THE BOOKS AND RECORDS OF THE CORPORATION AFTER THE COMPLETION OF AN AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS. THE FILING WAS REVIEWED BY THE PRESIDENT & CEO OF SIPC. PRIOR TO THE FILING, COPIES OF THE COMPLETED FORM 990, INCLUDING REQUIRED SCHEDULES, AS FILED WITH THE IRS, WERE PROVIDED FOR REVIEW TO THE AUDIT AND BUDGET COMMITTEE OF THE SIPC BOARD OF DIRECTORS AT ITS JUNE 2023 MEETING. THE FORM 990 WAS ALSO PROVIDED TO THE SIPC BOARD OF DIRECTORS FOR ITS REVIEW AT ITS JUNE 2023 MEETING WITH RECOMMENDATIONS BY THE AUDIT AND BUDGET COMMITTEE. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT SIPC HAS WRITTEN BUSINESS ETHICS AND WHISTLEBLOWER POLICIES, WHICH INCLUDE PROVISIONS REGARDING CONFLICTS OF INTERESTS, THAT APPLY TO ALL EMPLOYEES. THEY ARE INCORPORATED INTO THE WRITTEN PERSONNEL GUIDE. UPON EMPLOYMENT AND ANNUALLY THEREAFTER EACH EMPLOYEE, INCLUDING OFFICERS MUST SIGN A DOCUMENT STATING THAT THEY HAVE READ AND UNDERSTAND THOSE PROVISIONS. ANY CONFLICT OF INTEREST MUST BE REPORTED TO AN EMPLOYEE'S SUPERVISOR, AND REVIEW OF SUCH MATTERS IS UNDERTAKEN BY THE OFFICE OF THE GENERAL COUNSEL. PENDING REVIEW OF ANY CONFLICT, AN EMPLOYEE WILL BE PROHIBITED FROM WORKING ON THE RELEVANT MATTER. DURING THE ANNUAL AUDIT, THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS INQUIRE OF THE STAFF ON A TEST BASIS AS TO THEIR UNDERSTANDING OF THE POLICIES AND REPORT THEIR FINDINGS TO THE AUDIT AND BUDGET COMMITTEE OF THE SIPC BOARD OF DIRECTORS. UPON APPOINTMENT AND AT LEAST ANNUALLY THEREAFTER EACH NON-GOVERNMENT DIRECTOR SHALL CERTIFY IN WRITING THAT HE OR SHE HAS READ AND UNDERSTOOD AND WILL ADHERE TO THE CODE OF ETHICS FOR DIRECTORS: THAT HE OR SHE HAS NO KNOWN CONFLICTS OF INTEREST. THE GOVERNMENT DIRECTORS MUST ADHERE TO THEIR GOVERNMENT STANDARDS AND CODES OF ETHICS. EACH DIRECTOR ALSO MUST IMMEDIATELY DISCLOSE ANY CONFLICT AS IT ARISES AND RECUSE THEMSELVES FROM ANY DECISION SO AFFECTED. ANY SUCH EVENT IS DOCUMENTED IN THE MEETING MINUTES. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION COMPENSATION FOR ALL SIPC OFFICERS IS SET BY THE SIPC BOARD OF DIRECTORS ANNUALLY IN CONFORMITY WITH COMPENSATION GUIDELINES ADOPTED BY THE BOARD AND BASED ON THE RECOMMENDATIONS OF THE COMPENSATION COMMITTEE OF THE SIPC BOARD OF DIRECTORS. THEY REVIEW SALARY STUDIES BY OTHER ORGANIZATIONS, U.S. GOVERNMENT PAY SCALES, SECURITIES INDUSTRY DATA, AND INFLATION STATISTICS FROM THE U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, AS WELL AS PERFORMANCE AND WORK LOADS. GENERALLY, AN INDEPENDENT COMPENSATION STUDY IS COMMISSIONED EVERY THREE YEARS. THE LAST STUDY WAS COMPLETED IN 2020. FORM 990, PART VI, SECTION C, LINE 19 HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC SIPC WAS CREATED BY THE SECURITIES INVESTOR PROTECTION ACT (15 U.S.C. 78AAA. ET SEQ.). THIS STATUTE, SIPC RULES AND THE SIPC BYLAWS, WHICH INCLUDES "CONDUCT OF EMPLOYEES OF THE SECURITIES INVESTOR PROTECTION CORPORATION" IN SECTION 5, ARE POSTED ON THE SIPC WEBSITE: WWW.SIPC.ORG. THE CURRENT, AS WELL AS THE ENTIRE PRIOR 51 YEAR HISTORY OF, SIPC ANNUAL REPORTS, INCLUDING THE AUDITED FINANCIAL STATEMENTS, ARE ALSO POSTED ON THE WEBSITE. COPIES WILL BE MAILED UPON REQUEST. FORM 990, PART VII, SECTION A, COLUMN D: COMPENSATION INCLUDES AMOUNTS FOR SALARY, BONUS, SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN AND GROUP TERM LIFE INSURANCE. FORM 990, PART VII, SECTION A, COLUMN F: OTHER COMPENSATION INCLUDES CHANGES IN ACTUARIAL VALUE OF PENSION AND POST-RETIREMENT HEALTH PLANS, CONTRIBUTIONS AND EARNINGS OR LOSSES ON DEFERRED COMPENSATION PLAN, EMPLOYER 401K MATCHING CONTRIBUTIONS AND OTHER NON-TAXABLE HEALTH CARE PREMIUMS AND GROUP TERM LIFE INSURANCE. FORM 990, PART XI, LINE 9: PENSION AND POST-RETIREMENT BENEFIT RELATED CHANGES OTHER THAN NET PERIODIC PENSION COSTS -6,676,331.