From Trader below the top and back to the bankruptcy of Lehman Brothers

Toughness and durability are essential prerequisites for survival in the merciless corporate culture of Lehman Bros. Intense fighting almost collapsed company in 1984 due to a battle between the best trader and the best investment banker; and again in 1990 – the fight between SEA th of Shearson Lehman and that of American Express.

After separation of the operations in 1990, Fuld became co-CEO of one of the divisions in the bank, and in 1994 took charge of Lehman Brothers. After years of restructuring of the bank, the struggle for power among his subordinates and increase profits by over 11% just a few years.

In January 1997, Fuld approves $ 48 ml of additional executive compensation, mainly divided between investment banking and capital markets, as the old division remained just over $ 2 million – the strategy is clear, to move from the old Lehman according to instruments with fixed income. In 2002, the bankers are grouped by industry, which began to give much stronger results than the previous individual allocation. “Everything revolves around teamwork,” says Fuld.

There are three main factors for the success of Lehman Brothers, which Fald introduced. The first is that salaries are in line with the profits of the company, as the coefficient of compensation expenses to gross income is about 51%. Second, the Bank maintains a strong focus on government bonds of the United States, the world market for fixed income and credit derivatives. Third, the company retains its best managers, giving them a solid share of the company. In 1994 the bank employees are held 4% of the shares, and in 2004-35%.