For everyone that hates wall street: Bear execs lack golden parachutes as stock plan crunched

[dkf]

By Joseph A. Giannone

NEW YORK (Reuters) - Barring some unexpected boardroom generosity by JPMorgan Chase & Co, executives at Bear Stearns Cos may find that their walking away money has been crunched by the credit crisis.

Bear stock soared to a record high of $172.61 in January last year as Wall Street's mortgage and buyout booms peaked, but those shares have plunged as the bank played a leading role in fueling a subprime mortgage crisis that continues to inflict damage on financial markets.

Bear Stearns' shares, which sank to $30.85 Friday on worries the bank was quickly running out of cash and needed a Federal Reserve bailout, now fetch just $2 each under JPMorgan's bailout late on Sunday.

The plunging shares, plus a lack of the normal payout expected when a company is taken over, known as 'golden parachutes', delivers a serious blow to the bankers, traders and other executives worldwide at a firm that has long encouraged its above-average levels of inside ownership.

"The current stock ownership by executive officers reflects a significant personal investment in the company by those who are most responsible for the company's future success," the bank said in a proxy statement.

Employees own around 30 percent of the bank.

http://www.reuters.com/article/wtMostRead/idUSN1649271520080317

[Blue_In_AK]

1. How sad for them.

:cry: :sarcasm:

[enid602]

2. wonder

I wonder if the employees were forced to keep their 401K's in company stock, a la Enron.

[DeSwiss]

3. Should we take up a collection???

- Geeze, I hope they've got enough gas money to slink back home on....

[TML]

4. Boo Hoo

They can suck it up like we do outside the investor class.

[Lasher]

5. I wouldn't worry about former Bear Stearns CEO James Cayne

With a net worth of $900 million before this fallout, I doubt if you'll be seeing him selling pencils on a street corner in New York. His salary and other bonuses last year was $40 million.

[TXDemGal]

6. I am playing my teeniest, tiniest violin for them

:nopity: :nopity: :nopity: :nopity: :nopity:

[fasttense]

7. Oh, they'll just back date their stock sell dates. The SEC deregulated it, n/t

[Brewman_Jax]

8. I really feel for them

NOT!

They can suffer along with the rest of the workers that aren't entitled to a "golden parachute". :nopity: