Corpus ID: 154883539

The Wages of Failure: Executive Compensation at Bear Stearns and Lehman 2000-2008

@article{Bebchuk2009TheWO,
  title={The Wages of Failure: Executive Compensation at Bear Stearns and Lehman 2000-2008},
  author={L. Bebchuk and A. Cohen and Holger Spamann},
  journal={Corporate Governance & Finance eJournal},
  year={2009}
}
  • L. Bebchuk, A. Cohen, Holger Spamann
  • Published 2009
  • Economics
  • Corporate Governance & Finance eJournal
  • The standard narrative of the meltdown of Bear Stearns and Lehman Brothers assumes that the wealth of the top executives of these firms was largely wiped out along with their firms. In the ongoing debate about regulatory responses to the financial crisis, commentators have used this assumed fact as a basis for dismissing both the role of compensation structures in inducing risk-taking and the potential value of reforming such structures. This paper provides a case study of compensation at Bear… CONTINUE READING
    329 Citations

    References

    SHOWING 1-10 OF 13 REFERENCES
    Statement of Changes in Beneficial Ownership (Form 4)
    • Statement of Changes in Beneficial Ownership (Form 4)
    • 2008
    40 Bear Stearns changed its fiscal year between 1999 and 2000, so that the next proxy statement does not appear until
    • 40 Bear Stearns changed its fiscal year between 1999 and 2000, so that the next proxy statement does not appear until
    • 2001
    all securities awards seem to have vested immediately; cf. The Bear Stearns Companies Inc., Notice of Annual Meeting of Stockholders to be Held on
    • 44 In the case of Bear StearnsForm DEF 14A)
    • 1999
    Annual proxy statements for each bank and, for Bear Stearns in 2007, the amended 10-K. All amounts are inflation-adjusted to
      Executives 2-5* $15,256,715 $17,952,389 $34,457,261 $37
        Lehman CEO Executives 2-5* Bonuses $61
          Sales of stock $289,088,081 $817
            Sales of stock $461
              Stock remaining $11,656,420 $17