Today the investment bank, Lehman Brothers, announced a unique plan designed to keep its employees from leaving the firm amidst the current credit crisis that has plagued financial companies over the past year.
Lehman will be issuing 20% of the amount of stock that employees received in 2007 as a mid-year bonus of sorts. The shares will be issued at market price as of July 1 and will have a shorter vesting period which means employees can sell the shares in 3 years and not the usual five. Not only will this hopefully convince its 26,000 employees to stick around, but it boosts confidence in a company that has seen extremely negative press lately. Time will tell if this was a good move or not. I think CEO Dick Fuld has the right idea.
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