Fury at $2.5bn Lehman bonus

[spindrifter]

John Waples and Danny Fortson
From Times Online September 21, 2008

STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza.

The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff.

The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business.

A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”. It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year.

<more>

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4795072.ece

[Phoebe Loosinhouse]

1. This needs to be frozen immediately. nt

[napi21]

2. If Barclays is stupid enough to agree to it, that's THEIR problem!

YES, I said STUPID! I can only assume that the bosses at Barclays get the same bennies!

[Genevieve]

3. speechless . . . . nt

[Newsjock]

4. Well, there's $2.5B of the $700B right there

Immediate asset seizure, from every one of those disgusting vultures. I want them homeless and broke.

[samuraiguppy]

10. umm Lehman Brothers is not

part of the 700 Bill dollar ball out--we let them go under.

This is money being paid out by Barclay's which took over part of the operation. Although, I think it is a stupid decision on the part of Barclay's--it is not something that the US taxpayers are paying for.

[Lucky Luciano]

5. Most of the staff at Lehman deserved their bonus.

They are crushed for the most part. My coworker is close to someone who had $25MM in Lehman stock that just vanished. Also, Lehman had a policy of requiring stock bonuses to vest over 5 years,so it could not be sold easily. Much of that $2.5B in bonus was in stock that was struck at roughly $50 - so it is mostly worthless now. And fuck you to the guy that says that he wants all the Lehman staff broke and homeless. fuck you.

[angstlessk]

7. did you read the fucking article..the employees will not get the bonus

only the top 8..plus 200 others...sorry it is not the rank and file who are getting those bonuses!

[Lucky Luciano]

13. No....it did not say that

The key 8 would be paid very well - it is hard to find extremely competent people - they were not the ones who fucked up - they are key people that Barclays just got without having to poach from a rival firm. The other 200 are senior and will be paid well. The other 9,800 - some will be canned due to redundancy, but get remuneration packages to give them time to get work while having some cash in the kitty. Others who stay on will get some bonus too because good people will leave otherwise. Gotta run - time to gout out to dinner.

[druidity33]

15. "extremely competent people"?

"they were not the ones who fucked up"?

most everyone gets "renumeration packages"?


WTF?


You're making me angry now....

[druidity33]

8. broke and homeless?

you gotta be fucking kidding me Lucky. If these people making millions of fucking dollars from year to year don't have assets they can live on for a little while before they find another fucking job, then they're stupider than i thought they could possibly be.

Maybe they could try living more modest lives?

I manage to get by on less than $40,000 a year...

Maybe they could sell a watch or something?

:eyes:

[Lucky Luciano]

11. I was responding to the other guy's post.

I work at a bank that is infested with these forsaken mortgages as well, but we have enough to get through the mess. I definitely want to make a ton of money - say $20MM cash or so and then I can retire and travel the world. Maybe I would teach at university afterwards to keep busy (I am qualified to do so). If I earn the bank substantial sums, then I am entitled to a percentage cut. Usually for my desk that cut is 10% since we are on the buyside. Sell side earns a much lower percentage because there is a great deal of support that has to also get paid - but the traders on the sell side generate more revenue per head.

When the bank does poorly though, we can get fucked...and prior bonuses which include stock become worth much less...trust me when I say that if a few select former employees ever made it onto the trading floor again they will need a serious security detail or they would be lynched.

[Selatius]

12. The deal says most of the staff are going to get fucked over. Only 208 are to get anything.

The article says of those 208 that eight are essential with another 200 as being key to success. The rest? They're going to get flushed down the toilet.

[unblock]

14. most people on this board don't realize that these businesses are worthless without the employees

we already know that the other assets are of dubious value.

but the franchies is worth something -- but only if you can keep the good people!

i don't know if the figure allotted for bonuses is excessive or not, but i do know that without some big money for key people, barclays would be buying just a few empty buildings.

i worked at lehman when they went public. most of us were pissed when they instituted the restricted stock plan, because they cut the cash payout to pay for it. the 5-year vesting meant that anyone leaving the firm, for any reason, automatically lost 2.5 years worth of earned but not vested bonuses. it worked out well for people if the stock rose enough, but usually, it was a big loss for the rank-and-file.

[druidity33]

16. are we

or are we not talking about bonuses in the MILLIONS of dollars?

The "good people" will get jobs on Wall Street, don't worry. People who excel at their Profession will always find employment. If they were just part of the game and along for the ride, then maybe they should be content that they had it so good for so long.

Aren't these bonuses that you are referring to? Working in Retail (Corporate), i can tell you that i DON"T get a bonus every year, it depends on how well the company is doing.

What would you estimate is the average "salary" of the Wall Street "rank and file"?

:shrug:

[bluesmail]

6. In BushWorld, aka Cheney Gang

Fury would be a horse if it got them out of trouble. head hurts

[seafan]

9. As Jeb Bush rubs his pudgy white hands together in glee.

Fury at $2.5bn Lehman bonus, London Times, September 21, 2008

STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza.

The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff.

The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business.

.....

Forbes: Jeb Bush involvement with Lehman raises questions in Florida investment fund debacle, December 1, 2007