Anytime when something goes wrong, the board is just filled with "Blame it on the other side" posts. It is really all about picking a side and cheering for your team.
Sorry but I think the fact that the investment banking sector as we knew it no longer exists is pretty major development.
The Lehman CEO took a $22 million dollar bonus last year, that should be refunded immediatly. Too much deregulation. DD
now the fed is asking jp morgan and goldman to step up and create a $70+ billion lending facility for aig. what a cluster****...
That is a very broad statement regarding the industry. Certain products and services may no longer be available or at least harder to execute deals, but I wouldn't say that it no longer exists. M&A deals are still going through, research is still being written, and trades are still being executed. You are correct in that the top of the industry is a much different picture than that of a year ago, but a vast majority of banks in the middle market are still doing very well and have not seen much of a difference in operations. Financing is much harder to find at reasonable terms, but for groups that don't require outside financing, it is pretty much business as usual. So I'm a little confused as to how it no longer exists. It may look different to an outsider, but parts are still very healthy and it very much does still exist.
I'm so relieved that the Democrats aren't stooping to that old Republican strategy of politicizing a disaster!!
Absolutely. Out of the pockets of the fat cat board of directors who approved it. The CEO is just an employee. It's the board's job to prevent stuff like this, and they dropped the ball.
didn't sam say that it doesn't exist AS WE KNEW IT? How can you make a statement like for "groups that don't require financing, it is pretty much business as usual" while you are arguing that the financing markets are just fine?
LOL - I knew someone would whine about that, never mind that it is primarily the republicans policies of deregulation and lack of oversight that caused this disaster. It ain't politicizing if it is the truth sir. DD
Most likely not. In almost all cases high level executives receive most of their bonuses in restricted stock options.
What does regulation have to do with CEO compensation packages? That is a shareholder issue that the shareholders can dispute if they have a problem with. If the shareholders don't like how much an executive is making, they can attend the shareholder meeting and let them know it or can sell their stock.
R U serious? Sure that is technically true, but when the shareholders are spread out all over the world, it is more a matter that the board approves it, and then passes it through.... You are joking if you think the CEO of a failing company like Lehman should be keeping the $22 million in investment while shareholders are left holding the bag, can you say enron? Most are not restricted as far as my experience goes, unless they are the kind that vest over time, but that is not so usual in the CEO realm. DD
Interesting. Most of the ones I deal with, the CEO excuses himself and doesn't vote on his own comp package if he is on the compensation committee. I certainly don't know if that is commonplace - for the above I am only talking about 4-5 boards/companies that I have been intimately involved with. However, I can say with a fair amount of confidence that it is the norm for CEO pay packages to be heavily weighted to RESTRICTED stock options. Which is why I asked the question on Fuld. I wouldn't be overly shocked if the cash portion of his bonus was $22mm, but the bulk of his comp should have been in restricted stock options
Yes, but to say that the CEO is not part of the process, and knows exactly what is going on is disingenous. I mean it is a tit for tat scenario.....for example....ok, Mr. Chairman, I am giving you 10 million in stock and 5 million in cash.... Great, Mr. Ceo, I will award you likewise. DD
Bloomberg just showed video of Lehman employees protesting on the street. They had a huge poster with his picture and stuff scribbled all over it, like "hope his villa was safe."
