LEHMAN BROTHERS chief executive Dick Fuld and one of his lieutenants will not receive a bonus this year to atone for the investment bank's poor performance.
The move is a sign that Wall Street heads are set for a year of lower pay-outs. Mr Fuld, who last year received a $39 million (€24.7 million) bonus in cash and restricted stock, and Bart McDade, who was recently named Lehman's president, have told senior colleagues they will forgo their bonuses for 2008, according to people familiar with the situation. Lehman declined to comment.
The decision by Mr Fuld and Mr McDade was not unexpected, given Lehman's performance.
This month the bank reported a $2.8 billion loss in the first three months of the year - the first quarterly loss in its 14-year history - due to credit-related writedowns.
Mr Fuld took responsibility for the loss and removed chief financial officer Erin Callan and his long-time right-hand man Joe Gregory, Lehman's president, replacing them with Ian Lowitt and Mr McDade respectively.
Compensation experts expect other investment banking bosses to follow Mr Fuld and Mr McDade in refusing to receive a bonus for a year that promises to be one of the worst on record for Wall Street earnings.
