Lehman Offers Early Bonuses For Employees

Approximately one-third of Lehman's shares are owned by its employees.

July 3, 2008

Lehman Brothers is giving its 26,189 employees a portion of their bonuses early this year, in the form of an advance against any future equity award that is typically given out at year-end.
 
Professionals at the bank were told of the bonuses in an internal memo on Wednesday. The grant day for the equity award is said to be July 1 and it is said to vest in three years.
 
The last time Lehman offered such an accelerated bonus plan in this form was after the Sept. 11, 2001, attacks and during the 1998 financial crisis that was set off by the fall of Long Term Capital Management.
 
Lehman shares were trading at $22.85 midday Thursday, up 2%. That's just above a 52-week low of $22.36 and off from a 52-week high of $75.39.
 
Lehman declined to comment on the accelerated bonuses. Approximately one-third of Lehman's shares are owned by its employees.  
 
Last month, Lehman said it lost $2.8 billion, or $5.14 a share, in the second quarter ended May 31.

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