Lehman execs 'will miss out on bonuses'

27 June 2008

Richard Fuld, chief executive of US investment bank Lehman Brothers, is to go without his bonus for 2008.

Lehman president Herbert McDade is also to forego the annual lump-sum payment, following the recent financial troubles experienced by the firm.

Recently, Lehman announced a $2.8 billion loss for the last quarter - the first such declaration in 14 years as a publicly listed company.

This was due in part to the continuing effects of the credit crunch, as the bank has been forced into multi-billion asset writedowns and has suffered severe problems with raising funding on the money markets.

Over the past year, Lehman stock has dropped by 70 per cent in New York - one of the very worst declines of the entire sector.

Speaking to the Bloomberg news agency, Jeanne Branthover at Boyden Global Executive Search said: "I'd be surprised if other chief executives didn't give up their bonuses this year.

"[Mr] Fuld is preparing his guys for what's coming for them. He's setting an example because the troops will also get shrunk bonuses.''

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