Pearson defends Lehman trader bonuses
Steven Pearson, one of the four joint administrators of Lehman Bros Europe justifies the bonus package given to traders for their help in unwinding the collapsed bank's affairs
One of the Pricewaterhouse quartet in charge of the Lehman Brothers
administration has explained why traders were offered big bonuses to stay on and
help unwind the mountain of outstanding transactions held by the bank.
In the wake of Lehman’s collapse, the key staff members were offered a new
pay package which was propped up on an attractive bonus scheme dependent on the
traders striking deals which would improve Lehman’s financial position, the FT
Weekend Magazine reported.
‘You’ve got a bunch of people here who know these markets so well, and with
the right piece of information they can make you- or lose you- hundreds of
millions of dollars. The last thing you can afford to do in these circumstances
is be cheap, because if you’re cheap, you can ruin the ship or a ha’porth of
tar.’
The administrators are now preparing to face creditors this Friday.