Lehman bankers stay put

Not only is the US bank mounting European league tables with surprising alacrity, but its share price has been one of the best performing in recent years. As a result, say headhunters, its share-owning senior bankers are surprisingly hard to budge.

"It's very difficult to pull people out of Lehman," says the head of one international search firm in London. "Their share price has done phenomenally well in the past ten years and it's very expensive to buy people out."

Rival headhunters voice their accord. "Not only has Lehman's share price done very well, but they have an unusually large proportion of equity in the hands of their employees," says one.

In the five years since 2002 Lehman's share price has risen around 100%. This compares particularly favorably to JP Morgan Chase, whose share price has remained relatively static over the same period and Morgan Stanley, which has seen a rise of around 20%.

A spokesman for Lehman tells use 35% to 40% of the bank's shares are in the hands of employees and the proportion is rising all the time. "A majority of our employees are remunerated with stock, creating a strong sense of ownership," he says.

Lehman aspires for its share price to hit $100 in the next year (it's currently at $73). However, one headhunter says the fact that the bank has seen such strong rises may lead

However, one headhunter points out that the historically strong appreciation in Lehman's share price may lead bankers to decide there are better opportunities for upside elsewhere. "Who's to say banks won't decide Morgan Stanley stock offers stronger growth potential for the future."