Paraphrasing a line from Platoon: “He’s laughing at you. That’s the way the Robber Baron laughs.”
Days from becoming the largest bankruptcy in U.S. history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress was told Monday.
As well, executives who feared for their bonuses in the company’s last months were told not to worry, according to documents cited at a congressional hearing. One executive said he was embarrassed when employees suggested that Lehman executives forgo bonuses, and cracked: “I’m not sure what’s in the water.”
. . .
Waxman read excerpts from Lehman documents in which a recommendation that top management should forgo bonuses was apparently brushed aside. He also cited a Sept. 11 request to Lehman’s compensation board that three executives leaving the company be given $20 million in “special payments.”“In other words, even as Mr. Fuld was pleading with Secretary Paulson for a federal rescue, Lehman continued to squander millions on executive compensation,” Waxman said before Fuld appeared as a witness.
There just might be a class war going on after all.
Makes you glad McBama voted for the Bailout, doesn’t it?
Delighted.
Not to be contrary mind you, but say the three execs got their twenty million a piece. 60 million is .09% of the 612 billion they filed on.
This reminds me of the Delphi deal Mitch promoted a fews years ago.
The management took 90 million in bonuses and expected the union workers to cut their pay by more than 50%.
If the “free market” works the way the “free marketeers” say it does, why is bad behavior rewarded? Shouldn’t CEO salaries be decreasing until a CEO proves his/her self? When a corporation fails, doesn’t the “free market” religion say those CEOs will be punished, instead of bonused?
It seems to me that if these bonuses are OK that should mean that your typical staff secretary for Lehman Bros. should be earning $500,000 a yr minimum.That could be a model for typical free market distribtion of monies.Maybe a Christmas bonus of say, $50,000 for each full-time secretary would add fairness to the system? But this probably smacks of socialism to most.
A larger issue is why do bottom-rung workers always have to subsidize those at the top( or the system collapses)?
CEO salaries will drop when the shareholders say they will.