Discover your dream Career
For Recruiters

Lehman to Pay Stock Bonuses Mid-Year

Lehman Brothers will award mid-year stock bonuses to its 26,000 employees. The Wall Street Journal describes the award as "essentially a down payment for 2008 compensation." The remainder of the year's compensation will be paid as cash and stock in January, the newspaper reports.

The move was seen as an attempt to reward employees while the company faces tough times, and to take advantage of its stock price, which is now lower than it's been since 2000. However, one portfolio manager told Reuters that paying more stock isn't a sure way to retain employees when shares have been performing poorly.

Lehman is currently 30-percent owned by its employees. The Journal notes the new award has already been accounted for by the firm, and so won't increase that overall stake further.

Lehman shares rose on the news, as investors interpreted the bonus as a sign of the company's commitment to remaining independent - and not selling out at a bargain share price.

author-card-avatar
AUTHORMark Feffer Insider Comment

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
Experis
HIPAA compliance Analyst
Experis
Minneapolis, United States
Experis
Sox Manager
Experis
Los Angeles, United States
Trafigura
AP/AR Analyst
Trafigura
Montevideo, United States
Trafigura
Senior Compliance Manager
Trafigura
Houston, United States
Trafigura
Oil Risk and Market Analyst
Trafigura
Montevideo, United States
Trafigura
Documentation Specialist
Trafigura
Houston, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.