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Lehman Approves $100 Million to Execs Before Failing
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by Jordan Yerman | October 15, 2008 at 08:02 am
404 views | 8 Recommendations | 10 comments
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"Pay yourself first", conventional personal financial wisdom suggests. If you're a Lehman Brothers exec, these are words to live by. The board had approved more that $100,000,000 in executive payouts the day before Lehman Brothers failed.
The execs never got those payouts, but this is an interesting glimpse into Wall Street culture, which taxpayer dollars are propping up. There's little incentive for these folks to change.
The payoffs, approved on September 12 by the Wall Street giant’s compensation committee, included over $24m in severance packages to the collapsed firm’s top three London executives.
The committee agreed a $16.2m pay-off for Benoit Savoret, chief operating officer for Europe. This payment had been guaranteed by the firm after Savoret had turned down an approach to join a rival firm. Andy Morton, the fixed-income business head, was set for a $2m golden goodbye.
Both were forced out in a shake-up orchestrated from New York in the waning days at the troubled bank. A $5m package for Jeremy Isaacs, the European chief executive who also left, was approved as well.
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Most RecentMost Recommended Comments (10)
at 14:55 on October 15th, 2008
I think one word describes the culture. "Greed"
at 14:58 on October 15th, 2008
How do you know these crooked CEOs etc, didn't get the huge cash-out?
at 22:53 on October 15th, 2008
You may use my picture for a contribution of 10 USD which you can send via PayPal: Username is Michael Spahn, michael.spahn@gmail.com
Let me know if this is suitable for you.
Many thanks and best regards from Germany
Michael
Mispahn has contributed a photo to this story.
at 00:48 on October 16th, 2008
Picture taken in summer 2007 on Time Square in NYC
lodonnec has contributed a photo to this story.
at 03:24 on October 16th, 2008
This was taken the night that the Lehman Brothers situation was announced.
romahotshot has contributed a photo to this story.
at 12:42 on October 16th, 2008
from a passerby "they're all gone already!"
aegray has contributed a photo to this story.
at 18:27 on October 16th, 2008
jordan, I like this story. It's good stuff.
This is insanity! Why are these white collar criminals not being prosecuted?
at 01:09 on October 18th, 2008
This is a picture of the Lehman office in Frankfurt, Germany. Taken in early October 2008.
omgitsdev has contributed a photo to this story.
at 17:17 on October 19th, 2008
jordan, I like this story. It's good stuff. Yes, this is quite typical behaviour and sickening!
at 17:43 on October 27th, 2008
jordan, I like this story. It's good stuff.
Forgive them for they know not what they do ... or do they?