In March of this year, CNNMoney.com announced that Lehman Brothers Inc. Chairman and CEO Richard Fuld received total compensation of more than $22 million as “the company weathered the subprime mortgage collapse better than its rivals.” Fuld also earned an additional $40-plus million from exercising stock options, plus several smaller bonuses of a few million, on top of his regular salary of $750,000.
The article goes on to state how fortunate Fuld is in a financial climate which has seen a number of other top executives either resign or have to pass up lucrative bonuses due to the unstable real estate market. CNNMoney also praised Fuld for his leadership which allowed Lehman Brothers to weather the losses suffered by so many others, noting that its shares skyrocketed, closing out 2007 at $87.53.
And yet Monday, Wall Street was left reeling as Lehman Brothers filed for Chapter 11 bankruptcy, citing assets of more than $600 billion along with debts of more than $600 billion. The stock market began falling at the sound of the opening bell, and continued throughout the day. Lehman Brothers has the dubious distinction of being the largest bankruptcy in our nation’s history.
Four months ago, they were fine, but Monday, everything fell apart? How can it be possible that a company so fiscally responsible for more than 150 years, whose financial backing was instrumental in founding the cotton exchange, the building of the nation’s railroads, movie industry, and computer technology companies, and who were the first to finance up and comers such as Sears Roebuck, Macy’s and Gimbel’s, could fall so far, so fast.
Somewhere along the way, Lehman Brothers apparently fell victim to its own prosperity, forgetting all of the lessons learned when it weathered the Civil War, both World Wars and the stock market crash of 1929. Rather than continuing the sound financial policies the company was founded on, Lehman Brothers grew too large, paid its top executives far too much, financed risky ventures, and worst of all for a well-respected, worldwide financial services company, didn’t foresee and forestall its own financial future.
Congress has been talking for several years, ever since the Enron days, about taking on CEO compensation, especially when the lucrative bonuses come so close to a company’s major financial crash. Maybe now that this giant has fallen, Congress will finally do what it’s been promising and get tough on those who personally benefit while others lose their life savings and livelihoods.
What We Think
OUR OPINION: Financial failings are moral failings
- What We Think
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Elections: Creating a two-party region?
Twenty years ago, most area elections were decided during the primaries. Then, almost every candidate qualified as a Democrat. While there may be plenty of challengers on the ballot, many seats were decided in July or a few weeks later during the primary run-off.
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Thumbs up, thumbs down
THUMBS UP: To South Georgians making fine impressions on television singing competitions. Phillip Phillips of Leesburg won “American Idol” this week. Meanwhile, Lowndes High School graduate Stacia Watkins participated in the new ABC show “Duets.” Well done!
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Farewell to the vanishing ace
Donald S. “Bush” Bryan was not only a rare individual. He was part of a vanishing breed.
An Adel resident for the past 30 years, Bryan was a World War II flying ace. Not just an ace but a double ace. A pilot must down five enemy aircraft to become an ace; Bryan downed 13.3 enemy planes in Europe. The fractions represent planes downed with other pilots. -
A widespread mosquito alert
In announcing the discovery of a mosquito carrying the West Nile Virus strain, city and health officials did not include the specific location of the discovery.
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Of Guantanamo Bay and a Founding Father
Some readers may wonder how a Valdosta High School graduate could bring himself as an attorney to represent a Guantanamo Bay prisoner charged in connection to the Sept. 11, 2001, terrorist attacks.
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Congratulations, VSU Softball!
This weekend, Valdosta State University Blazers Softball became the latest team to add to Valdosta’s TitleTown legacy.
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School’s out so watch out!
Summer is a time of rest, vacations and trips. It is a time when school is out, when people take time off from work, when people may stay out a little later. It is a time of swimming, trying new things, and seeking adventure.
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Qualifiers are next leaders
While the national media focuses attention on the presidential election, it should be remembered that we will also choose our local leaders this year.
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Thumbs up
THUMBS UP: To the 2011-12 arts season. Theatre Guild Valdosta’s rollicking comedy, “Caught in the Net,” officially brings to a close a magnificent schedule of shows ranging from theatre to opera to concerts to art exhibits and more from a variety of area venues. Theatre Guild will also open the 2012-13 season this summer with the musical “Into the Woods.” Until then, arts lovers can soon enjoy a new series of exhibits from the year-round Annette Howell Turner Center for the Arts and three musicals starting in two weeks from Peach State Summer Theatre.
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Events that get things done
Finding something that repeatedly attracts the public is difficult enough, but finding an event that accomplishes that feat while also promoting your organization and helping others … well, in many places, that’s a rarity.
Not so for the Valdosta area. - More What We Think Headlines
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Elections: Creating a two-party region?
