Richard S. Fuld, Jr.

Richard Severin Fuld, Jr.
Fuld speaking at a World Resources Institute forum in January 2007.
Born	April 26, 1946 (1946-04-26) (age 63) New York, New York
Nationality	United States
Education	M.B.A.[1]
Alma mater	MBA New York University, BA University of Colorado
Employer	Formerly Lehman Brothers
Salary	$22,030,534 (2007)
Net worth	N/A
Title	Formerly Chairman and CEO of Lehman Brothers
Board member of	Middlebury College,New York-Presbyterian Hospital, Robin Hood Foundation
Religious beliefs	Jewish[2]
Spouse(s)	Kathleen

Richard Severin Fuld, Jr. (born April 26, 1946, New York, New York) is an American banker and executive best known as the final Chairman and Chief Executive Officer of Lehman Brothers Holdings Inc. Fuld had held this position since the firm's 1994 spinoff from American Express Company until 2008. Lehman Brothers filed for bankruptcy protection under Chapter 11^[3] on September 15, 2008, and subsequently announced a sale of major operations to parties including Barclays Bank and Nomura Securities.

Biography and career at Lehman

Fuld was born to Richard Severin Fuld, Sr. and Elizabeth Schwab.^[4] He received his B.S. from the University of Colorado at Boulder in 1969 and his M.B.A. from New York University's Stern School of Business^[1] in 1973. While attending Boulder, Fuld participated in the Naval Reserve Officer Training Corps program and was president of the school's chapter of the Alpha Tau Omega social fraternity.^[5]

Richard Fuld's first career as an Air Force pilot came to an abrupt end when he got into a fist fight with a commanding officer. Fuld was said to have been defending a young cadet who was being taunted by the senior officer.^[6] He then began his career with Lehman Brothers in 1969, the year the firm's senior partner Robert Lehman died, and stayed at the company since then. Beginning as a commercial paper trader, Fuld rose through the organization taking increasingly senior roles. During his tenure, Fuld witnessed and participated in the numerous changes which the organization endured, including its merger with Kuhn, Loeb & Co, and its acquisition by American Express, merger with E.F. Hutton, and ultimate spin-off from American Express in 1994, once again as Lehman Brothers.

From the years 1993 to 2007, he is reported to have received nearly half a billion dollars in total compensation.^[7] In 2007, Fuld was reported to have been paid a total of $22,030,534, which included a base salary of $750,000, a cash bonus of $4,250,000, and stock grants of $16,877,365.^[8] CNN named Fuld as one of the "Ten Most Wanted: Culprits of the Collapse" of the 2008 financial collapse in the United States; he was placed at number 9 on the list.^[9]

Congressional hearing testimony

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On October 6, 2008, Fuld testified before the United States House Committee on Oversight and Government Reform on Capitol Hill regarding the causes and effects of the bankruptcy of Lehman Brothers.^[10][11][12]

During his congressional testimony, CNBC reported that Fuld was attacked and "knocked out cold" at the Lehman Brothers gym due to Lehman's declaration of bankruptcy.^[13] Representatives of Fuld denied the report.^[14]

In October 2008, Fuld was among twelve Lehman Brothers executives who received grand jury subpoenas in connection to three criminal investigations led by the U.S. attorney's offices in the Eastern and Southern Districts of New York as well as the District of New Jersey, related to the securities fraud associated with the collapse of the firm.^[15][16][17]

After Lehman

On November 10, 2008 Fuld sold his Florida mansion to his wife Kathleen for $100; this may protect the house from potential legal actions against him. They had bought it only 4 years earlier for $13.56 Million.^[18][19] On March 17, 2009, New Jersey governor Jon Corzine commenced a lawsuit on behalf of the state of New Jersey against Fuld, several former Lehman Brothers executives and former members of Lehman Brothers' board of directors for fraud and misrepresentation. The suit seeks compensatory damages of $118 million in addition to punitive damages.^{[citation needed]}

In April 2009 Fuld took up a position with New York hedge fund Matrix Associates.^[20]

Awards, honors and board memberships

In 2006, Fuld was named #1 CEO in the Brokers & Asset Managers category, by Institutional Investor magazine.^[21] In 2007 he received a $22 million bonus.^[22]

Fuld at one time served on the board of directors of the Federal Reserve Bank of New York, a position he ceased to hold shortly before the bankruptcy of Lehman Brothers. He is a member of the International Business Council of the World Economic Forum and the Business Council. He also serves on the Board of Trustees of Middlebury College and New York-Presbyterian Hospital. As well he was on the board of directors of the Robin Hood Foundation, but was removed from the Board following the Lehman Brothers bankruptcy.^[23]

In December 2008, Fuld was given the "Lex Overpaid CEO" and "thief" award of the Financial Times for having received $34m in 2007 and $40.5m in 2006, the last two years before his bank's failure.^[24]

CNBC named Fuld at the top of its list of "Worst American CEOs of All Time", stating he is "belligerent and unrepentant".^[25]

References

External links

• Lehman Brothers
• Reference for Business - Richard S. Fuld, Jr.
• Times Topics
• http://www.iimagazine.com/Article.aspx?articleID=1233833&HideRelated=1&SearchResult=1