Posted on 09/21/2008 3:06:14 PM PDT by LiveFreeOrDie2001
Fury at $2.5bn Lehman bonus Nomura and Barclays table bids today for US giant’s London operation as bank’s administrator likens collapse to EnronJohn Waples and Danny Fortson 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. Related Links Paulson hailed as hero for stemming market slide A sickening slump gives way to euphoria The $2.5 billion had been accrued as part of the contribution to Lehman’s group profits for the first nine months of the year. Barclays said there is no obligation to pay it out but analysts say the competitive pressure to keep key staff means he will have to. p>
(Excerpt) Read more at business.timesonline.co.uk ...
Where do you see it’s divided among 5000 people?
Not if the voted to give the execs the bonuses
I don't know how they do it at Lehman or did it, but believe me when I tell you that few people will not see some of that cash after it gets distributed, even the doorman.
That's how it works, and how it's always worked.
Lehmans isnt getting a bail out from taxpayers
See my 43 where I explained this aspect.
They got hosed on credit default swaps, CDOs and the short sellers.
Repeat as necessary.
Tough decisions and volatile risks to resolve by Washington, however who is left holding the bag in the loooong run?
Who would you prefer to give the bag to?
So, based on some experience you have, you’re saying it will be split between 5000 people and not just the approx. 210 that the article mentions? I’m trying to understand where you came up with the 5000 figure.
Just pointing out the 5000 you mention are not part of the numbers for the bonus at all. They are in foreign offices and it looks like they have a “feeling” their services will not be required within days.
So yeah, it is really hard to see people getting the money in one building, but you are on the street.
And equitable share of that money to the doorman, in the current company operations is nothing near equitable. In fact, I can guarantee that doorman is a contractor and won’t see a dime.
You know, I think this sort of thing drums up as much Republican hate as anything. Don’t ask me how people know that the people receiving the bonuses are Republicans, but somehow they do. (Or at least think they do.)
Bottom line is that Barclays will prolly buy the sound assets on the cheap and not take the liability.
In this case the shareholders
The manufacturer of the bag, up front and in their face.
But where are all the customer’s yachts?
Bonuses go out once a year, and even though the payee list is somewhat limited to responsibility, the money is spread around in good companies which is why people stay long hours and are very loyal. it's just how things are done, and they think of themselves as family.
Probably worth every penny. What’s the point of buying Lehman without the people. For those who are not deemed worthy of getting the stay on bonus it’s tough but it’s life. Time for them to find another job.
That would be congress.
Yep.
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