Oct 06
Richard Fuld & His Golden Parachute
Posted by Slobokan @ 13:33 · 83 words · print
I am sitting here watching CSPAN. The House Oversight & Government Reform Committee is holding a hearing on the bankruptcy of Lehman Brothers.
Committee Chairman Henry Waxman asks Former CEO Richard Fuld if he thought his $480 million compensation package was "fair".
He actually tries to justify taking his options because "if he didn't, he would lose them". All of this happened while the company was circling the drain, employees were jumping ship, and investors were losing their shirts.
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Posted In: News Worthy
Posted by Gerrard M.
October 11, 2008 @ 15:20
For years, Lehman Brothers had been squeezing its middle-to-lower tier employees in order to keep the top level executives highly over-compensated. The top Sr. members(SVP, Managing Directors and above..) have never suffered a decreasing bonus, in both good OR bad years. The only way to get a payout at Lehman Brothers was to 1) have a guaranteed contract OR 2) already be a top-level LEH executive
Every year I worked at LEH, i saw that top level mgmt. would “hoard” the bonus pool $$s leaving the lower tiers to fend for themselves, and it’s a damaging way to run a company that i knew would only lead to their eventual demise, as time has just proven in Lehman’s case. Greed/Theft is the only way to summarize Lehman & Dick Fuld scenario.
After too many 14-hour work days on the trading desk and often working weekend hours, I realized that working on Wall Street was a sham in many respects, as the top levels always got paid-out regardless of performance, and most of the worker bees were left to fend for themselves.
Posted by Matt
October 16, 2008 @ 14:37
Still Gerrard, you had it a lot better on the bottom than most people