<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Lehman CEO may lose pay
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->New York - Lehman Brothers creditors have legal grounds to retrieve pay given to chief executive Richard Fuld, who took home US$34.4 million (S$49.3 million) last year.
Bankruptcy law expert Lynn Lo- Pucki said: 'Bankruptcy law allows recovery of compensation paid to insiders if the company didn't receive reasonably equivalent value. The value of the services of a CEO who runs a company into bankruptcy is less than US$34 million.'
Lehman was the fourth-largest United States investment bank before it filed the biggest bankruptcy in US history on Monday. Its top five executives got US$81 million, according to a March 5 proxy statement.
Mr Fuld, 62, was not overpaid by some Wall Street standards. Goldman Sachs CEO Lloyd Blankfein made US$70.3 million last year.
Part of Mr Fuld's compensation may be hard to recover, as it included US$27 million in stock awards last year. Lehman shares closed at 21.5 US cents on Friday in over-the- counter trading in New York. Its unsecured creditors formed a panel on Wednesday to pursue claims. They included Bank of New York Mellon Corp and Royal Bank of Scotland.
Sunk by sub-prime mortgage investments, Lehman was left with US$613 billion in debt.
A federal judge has temporarily halted outside lawsuits against it, though creditors are allowed to pursue claims through the bankruptcy process.
Meanwhile, a bankruptcy judge approved a plan yesterday under which Lehman will sell its investment banking and trading businesses to the British bank Barclays. Bloomberg
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->New York - Lehman Brothers creditors have legal grounds to retrieve pay given to chief executive Richard Fuld, who took home US$34.4 million (S$49.3 million) last year.
Bankruptcy law expert Lynn Lo- Pucki said: 'Bankruptcy law allows recovery of compensation paid to insiders if the company didn't receive reasonably equivalent value. The value of the services of a CEO who runs a company into bankruptcy is less than US$34 million.'
Lehman was the fourth-largest United States investment bank before it filed the biggest bankruptcy in US history on Monday. Its top five executives got US$81 million, according to a March 5 proxy statement.
Mr Fuld, 62, was not overpaid by some Wall Street standards. Goldman Sachs CEO Lloyd Blankfein made US$70.3 million last year.
Part of Mr Fuld's compensation may be hard to recover, as it included US$27 million in stock awards last year. Lehman shares closed at 21.5 US cents on Friday in over-the- counter trading in New York. Its unsecured creditors formed a panel on Wednesday to pursue claims. They included Bank of New York Mellon Corp and Royal Bank of Scotland.
Sunk by sub-prime mortgage investments, Lehman was left with US$613 billion in debt.
A federal judge has temporarily halted outside lawsuits against it, though creditors are allowed to pursue claims through the bankruptcy process.
Meanwhile, a bankruptcy judge approved a plan yesterday under which Lehman will sell its investment banking and trading businesses to the British bank Barclays. Bloomberg
