Waxman Asks Fuld: 'Is this fair?'

As expected, the House Oversight and Government Reform Committee -- led by chairman Henry Waxman -- has had tough questions for Lehman Brothers CEO Richard Fuld.

Waxman displayed a chart showing that Fuld had received about $480 million in total compensation during the last seven years. Waxman then said Lehman's actions had helped lead to a crisis on Wall Street, causing significant losses for investors. But Fuld gets to keep the money, Waxman pointed out, adding, "I have a basic question for you: Is this fair?"

Fuld said the $480 million figure was not entirely accurate, but acknowledged his compensation was a "large number." He also said: "We have a compensation committee that spent a tremendous amount of time making sure the interests of the executives and employees were aligned with shareholders. My employees owned close to 30 percent of our company because we wanted them to think and act and behave like shareholders. When the company did well, we did well. When the company didn't do well, we did not do well."

-- Michael S. Rosenwald

October 6, 2008; 1:25 PM ET  | Category:  business
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Comments

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When the company didn't do well, Fuld didn't do well? Puhleeze. The company went belly up. He and other Lehman executives will split a 2.8 billion bonus pool. Where's the disconnect? We should SEIZE that pool and use it as an offset against the 700 billion dollar bailout. Anyone agree?

Posted by: Chad | October 6, 2008 2:05 PM

Posted by: Venkat | October 6, 2008 2:13 PM

A witch hunt; just toss him in the water and let's see if he floats.

Posted by: John | October 6, 2008 2:16 PM

Looks like the DOW will blow a thousand points today!

Posted by: Anonymous | October 6, 2008 2:28 PM

Let me get this straight...

Fuld took home an average of $60 million a year over the course of 7 years and Lehman cooked the books right under the nose of the SEC. Sheer arrogance.

No wonder there are so many ex-pats.

Posted by: Terry | October 6, 2008 2:29 PM

A powerful witness. Backs down none.

Posted by: bmc | October 6, 2008 2:36 PM

..and we let those greedy, heartless, cheaters get away with it all...are we so helpless? Oh, yes, we let ourselves be the looser...

Posted by: villa | October 6, 2008 2:39 PM

LOL! It's not fair to Hank! Hank only took home 111 millions over four years!

Posted by: Anonymous | October 6, 2008 2:51 PM

With such tough questioning fuld must be shakeing in his 1000$ shoes.I imagine at lunch break they will all sit down for a 5 course meal and it will be bussiness as usual.Now if you sent him to gitmo and used a little water boarding,the truth might come out,better yet put him on D block at rikers island,he has stolen more then the entire wing of criminals on rikers island why shouldnt he be their.The joys of being an educated crook,jail is for the uneducated not for ivy leauge back scratchers.But then again when you have the fox questioning the fox you end up with an empty hen house.

Posted by: geronimo | October 6, 2008 2:52 PM

A true demonstration of the high premium paid to those who have the credibility and the willingness and capacity to lie well.

Posted by: rjc116 | October 6, 2008 4:08 PM

Wall Street, has "bought off" our elected politicans! They will now go through an "exercise" to try and expose the wrong doings of Fuld and company, but nothing will really come of it. Rightly, all of Fuld's monies,multiple homes,art collection, etc should be sold off and given back to the share holders!

Posted by: cicho | October 6, 2008 8:52 PM

Righ now folks, I am choking my chicken.

Posted by: Bob Ham | October 7, 2008 3:02 PM

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