Lehman execs give up 2008 bonuses: report

Jun.27, 2008 in Market Outlook

Lehman president, CEO to give up bonuses: report

By Riley McDermid, MarketWatch

Last Update: 6/27/2008 8:03:00 AM

NEW YORK (MarketWatch) — The chief executive and president of Lehman Bros.
Holdings have said that they will forgo their 2008 bonuses in a nod to the
beleaguered investment bank’s recent troubles, a report said Friday.

Earlier this month, Lehman (LEH) reported its first quarterly loss since going
public in 1994, writing down nearly $3 billion in assets for the second quarter
after massive losses on devalued securities and a weakening credit climate.

Against this backdrop, CEO Dick Fuld and President Bart McDade told managing
directors this week that they will not be taking the largest chunk of their pay,
people familiar with the matter told Bloomberg News.

Fuld reportedly received 98% of his $40 million compensation in the form of a
bonus last year.

The move was likely the first step in preparing other high-earning senior
managers that they also will be expected to give up their bonuses if Lehman’s
stock price continues to suffer, the report said.

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