CEO Watch Lehman Boss to Give Up Bonus
Lehman Brothers C.E.O., Richard Fuld, has reportedly decided to give up his 2008 bonus after the investment bank posted its first-ever quarterly loss since going public in 1994.
Lehman, the nation’s fourth-largest investment bank, lost almost $3 billion in the second quarter, according bank insiders who wished not to be identified, reports the Associated Press.
“This is my responsibility,” said Fuld on a recent conference call with journalists, according to AP.
Bart McDade, Lehman’s chief operating officer, will reportedly join Fuld in foregoing a 2008 bonus.
The bank recently raised $6 billion in capital after losing $2.8 billion during the second quarter.
Fuld joins a growing list of chief executives who have decided to give up annual bonuses as shareholder ire has risen amid tumbling profit figures. Last year, Morgan Stanley’s John Mack gave up his bonus, joining top executives at Bear Stearns and Merrill Lynch who did the same.
Despite the loss, Fuld should remain in sound fiscal shape. Lehman’s chief executive has made nearly half a billion dollars since the firm went public in 1994, despite a 60 percent drop in Lehman’s stock so far this year, reports fortune.com
Fuld has made $489 million from selling over 14 million optioned and restricted shares, Last year when Lehman’s stock fell 16 percent, Fuld made $53 million from selling shares, adds fortune.com.
