Lehman Employees Getting Stiffed
Nobody expected warm fuzzies, but the harsh treatment of Lehman's rank and file contrasts sharply with those from Bear Stearns, who, in some cases, had weeks to clean out their desks and goof around while collecting severance that, in many cases, will run into 2009.
This sucks:
The message delivered to shocked Lehman Brothers staff on Monday was simple and direct.
“It’s over,” announced Christian Meissner to a morning staff gathering just a week after being appointed to run Lehman Brothers in Europe. He told the staff to look for new work and “move on”.
Some staff were also told not to expect a paycheck at the end of the month and that they might even be liable for expenses on their corporate credit cards. FT
The hordes of tourists who gathered to gawk outside of Lehman's midtown HQ were even treated to performance art; and deserved to get run over by impatient employees leaving work for the last time.
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'People were walking around in shock, girls were crying and guys were hugging and people were drinking lager and red wine in the canteen bar' Sphinx Patterson, personal trainer at Lehman Brothers
'I got an email on Sunday telling me to come in early and report to my desk and then everyone got told they were excused for the rest of the day. We are worried we won't get this month's pay cheque on Friday. I have to apply for a visa to stay in the UK now'
Duo Ai, research department
'It's unlikely anything is going to happen and everyone is finishing up. It's like a terrible death or like a massive earthquake'
Kirsty McCluskley, trading floor
'I just rented a flat with a six-month contract so I will have to find another job in London to finance it'
Edouard d'Archimbaud, first day on trading floor
'It is bad news for everyone. My career is screwed. Everyone is upset' Jack Reynolds, graduate trainee
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Exodus of employees told to ‘move on’
Financial Times
Jobs cull begins in London and New York as Lehman Brothers goes to the wall
Guardian
Winners Emerge From Frannie
Short Sellers are not the only ones cashing in on the changing of the guard at Frannie-the CEO's will make out just fine, thanks:
Mr. Syron may walk away with an exit package that could total as much as $15 million, says David Schmidt, a senior consultant at James F. Reda & Associates LLC, a compensation consulting concern in New York. That includes a pension and deferred compensation, about $3.7 million in severance pay, and a possible payment of $8.8 million to compensate for forfeiting certain equity grants.
Mr. Mudd's exit package, including stock he already owns, could total $14 million, Mr. Schmidt estimates. That includes $5 million in pension and deferred compensation, $4.2 million in severance pay and $3.4 million of restricted stock, based on Friday's closing price. That value of that stock could fall sharply, however. WSJ
Syron walks with up to $8.8 million for forfeiting certain equity grants? It might written into his contract, but that is just wrong.
U.S. Outlines Fan-Fred Takeover
WSJ
Bonus Season: Politics Over Merit
How is your bonus looking? Get a guarantee, says Mean Street’s Evan Newmark.
The days of the meritocracy are over; life ain’t fair and you are going to get screwed if you don’t start lobbying right now.
How Not To Layoff People
Wall Street is not the only place employees get a sense of foreboding before getting the axe.
But some people on Madison Avenue are tipped off in unique ways....
Struggling media agency Carat is planning a major restructuring of its U.S. operations, including an undetermined number of layoffs—news it accidentally released today via a memo the agency’s top New York-based HR executive e-mailed to the entire agency that appeared to be intended only for senior managers.
In a rare, uncomfortable look into the preparations for employee layoffs, management informed its rank and file of forthcoming layoffs and other changes in Microsoft PowerPoint and Word documents full of “message” points on how people should be told of their fate and what should be said to their still-employed colleagues, clients and vendors. According to one person with knowledge of the memo, it was sent to all staffers before the mistake was realized, and it was pulled back by the IT department. The documents, obtained by Advertising Age and posted with this story, detail talking points for managers as they talk to clients, vendors, the press and employees as Carat tries to navigate the fallout from the news.
In an interview, Carat President Scott Sorokin depicted the forthcoming moves as being in the best interest of the clients and as a response to “client needs.” He said that the layoffs would be across various parts of the agency, not just the buying groups, which figure heavily in the documents. He said that that emphasis is because those groups are spread across various satellite offices.
Do they all use this script?
Included was a script for how the downsized would be informed: “If you would like to go home today and come back tomorrow to clean out your desk or office, you are free to do so. We would like you to meet with your manager following our meeting to transition your work. We will be communicating to your team today. Your manager will be contacting clients. We ask that you do not contact your clients to discuss this situation.”
Hey, aint life grand (in corporate America)?
E-mail Blunder Alerts Carat Staff to Major Restructuring
Ad Age
Kieran Prior: The Most Remarkable Trader on the Street
Do you know the story of Goldman’s prop trader with a 238 IQ?
This is the most remarkable story I have read about Wall Street firms in a long time...I like to give Goldman grief because they are probably the best, and this story shows why.
Simply remarkable, and probably not what you think....with a cameo from John Thornton…
Kieran Prior: Goldman Sach’s whiz-kid wheeler dealer
Times Online
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My name is Kieran Prior, I am an equities trader at Goldman Sachs, where I have worked for six years. Before this I studied economics at the University of Manchester where I received a 2:1. I have secondary dystonia which affects my motor skills.
My choice of university was, for the most part, determined by academic reputation, but from a practical point of view, its location meant that I could stay at home while I studied. I wanted to challenge myself in every possible way against the best students and ultimately get the best job. I am fortunate to have found my course stimulating and exciting while still being able to make lifelong friendships with my course mates. In order to complete my studies I had extra time for exams and assessments, and I also had a scribe during lectures which I sourced myself.
It has been one of my life’s principles that my disability would not rule my life choices. When I decided I wanted to be a trader, I simply did not listen to those who said it couldn’t be done or that I was wasting my time. Instead, I made it my life’s purpose to become a trader. Employment Opportunities helped me find the company websites and details of how to apply. I applied to many of the investment banks but had a clear agenda to join Goldman Sachs after meeting some of their representatives.
I mentioned on my application form that I was registered disabled and they got in touch to ask if there were any adjustments and support I might need during the selection process. I used to get very tired in the afternoon when I was at University and I knew that after lunch I would not be able to communicate as effectively at interview. I asked if I could just attend the morning interviews and then come back on a separate day to complete the schedule, which I did.
When I started work, I had my desk raised and I have a clicker phone and a trackball mouse. When I first joined I had a helper who came in to assist me at lunchtime but I don’t need this anymore.
In my six-year career, I have found my colleagues to be both extremely helpful and intelligent. The culture of the firm allows a diverse group of talented individuals to work together towards a common goal. I have always considered myself to be a trader, who happens to be disabled, rather than a disabled individual who is a trader. It is this that I believe every disabled person should consider: that you should contribute to society through whatever means you have at your disposal first, and consider yourself to be disabled as secondary.
National Bureau for Students with Disabilities
Kieran’s Profile
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