Re:My Time at Lehman
by RestlessMind on Friday April 12, 2013 @03:53PM
(#5540642)
>Lehman was emphatically NOT staffed by the best and brightest -- it collapsed.
"Lehman collapsing" might be unrelated to "individuals at Lehman succeeding". You make a big gamble and if you succeed, there is big bonus. If you lose, there are no financial penalties (at worst, you lose your job which should not be a big deal for someone who has already made millions. Like, Dick Fuld).
In fact, in absence of regulations like bonus clawback or multi-year bonus vesting, folks on Wall St. seem to have behaved in a completely rational way until 2008 crash.
"Lehman collapsing" might be unrelated to "individuals at Lehman succeeding". You make a big gamble and if you succeed, there is big bonus. If you lose, there are no financial penalties (at worst, you lose your job which should not be a big deal for someone who has already made millions. Like, Dick Fuld). In fact, in absence of regulations like bonus clawback or multi-year bonus vesting, folks on Wall St. seem to have behaved in a completely rational way until 2008 crash.