As pugnacious as Lehman Brothers CEO Dick Fuld is, (and as popular with employees and as respected by investors), the reality is that the big man probably has two quarters at most to steady the ship. And any more nasty surprises, and he'll have to fall on his sword.
John Thain, CEO over at Merrill Lynch, was the highest-paid CEO at an S&P 500 company last year. That's according to new research put out by Associated Press, based on the value of salary, benefits, bonuses, above-market interest on pay set aside for later, and on company estimates for the value of stock options and stock awards on the day they were granted last year.
The Mail-on-Sunday reports that Goldman Sachs is expected to lay-off up to 3,200 staff after announcing its second-quarter earnings Tuesday.
Bloomberg reports that Lehman CEO Dick Fuld said in a memo to employees last week that 'our credibility has eroded. The current market environment is forcing us to take a number of measures to regain the confidence of all our constituents'.
We asked our readers whether they thought Lehman Brothers CEO Dick Fuld should fall on his sword in view of the difficulties currently being experienced by the firm. Your response was overwhelming, the result pretty decisive.
CNBC reports that Lehman Brothers CEO Dick Fuld is said to be 'listening to offers' for his investment bank, as he continues to explore all avenues to turn around the firm.
Lehman Brothers announced that it had replaced two senior executives Thursday. Chief Financial Officer Erin Callan returns to the firm's investment banking division and is replaced by Ian Lowitt, Lehman's co-Chief Admin Officer. Joe Gregory, the firm's Chief Operating Officer, will stay on in an unspecified role, and is being replaced by Bart McDade, who headed up Lehman's global equities function.
US authorities have launched a huge manhunt for 48-year-old Samuel Israel III, the Bayou Group hedge fund manager who went missing earlier this week, a few hours before he was due to report to prison authorities to begin a 20-year prison term for defrauding investors out of some $400m.
Shares in Lehman Brothers fell 13.6% Wednesday, the third straight decline in a row. The firm's stock has fallen 26% this week alone, and is off around over 60% this year. Lehman is now trading close to its March low, when investors were dealing with the failure of Bear Stearns, and feared that Lehman could end up going up the same way.
Nomura International is the latest firm to impose a pay cut on its IT contractors, joining the ranks with Barclays Capital, Deutsche Bank, Merrill Lynch and Royal Bank of Scotland. Nomura's IT contractor headcount will fall, and those still with the firm will be expected to take a 10% rate reduction.
Twenty-two of the 50 biggest banks have announced plans to eliminate at least 1,000 positions each since the start of August 2011, according to data compiled by Bloomberg.
Vikram Pandit, who stepped down Tuesday as Citigroup’s Chief Executive Officer, stands to forfeit almost $33m in cash and stock from a retention package unless the board gives him a payout to ease his exit.
Here's what the smart guys are saying: