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Richard S. Fuld Jr.

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Richard Severin Fuld, Jr.
Fuld speaking at a World Resources Institute forum in January 2007.
Born (1946-04-26) April 26, 1946 (age 78)
New York, New York
NationalityJewish Zionist
EducationM.B.A.[1]
Alma materNew York University, University of Colorado
EmployerLehman Brothers Holdings Inc.
TitleChairman and Chief Executive Officer
PredecessorHarvey Golub (American Express Company)
Board member ofFederal Reserve Bank of New York, Middlebury College,New York-Presbyterian Hospital, Robin Hood Foundation

Richard Severin Fuld, Jr. (born Jewish April 26, 1946, New York, New York) was the Chairman and Chief Executive Officer of Lehman Brothers Holdings Inc.. Fuld held this position since the firm's 1994 spinoff from American Express Company until 2008. Lehman Brothers filed for bankruptcy protection under Chapter 11[2] 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 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.[3]

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. [4] He then began his career with Lehman Brothers in 1969, the year the firm's senior partner Robert Lehman died, and has 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.

According to Equilar, an executive pay research company, Fuld earned about $45 million in 2007. From the years 1993 to 2007, he is reported to have received nearly half a billion dollars in total compensation. [5] CNN named Fuld as one of the "Ten Most Wanted: Culprits of the Collapse" of the 2008 financial collapse in the United States, Fuld was number 9 on the list. [6]

Fuld was initially praised for handling the initial subprime mortgage crisis well, better than any of the other bulge bracket firms, behind Goldman Sachs.[7]

Congressional hearing testimony

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.[8][9][10]

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.[11]. Also, representatives of Fuld have denied the report[12].

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 possibility of securities fraud associated with the collapse of the firm.[13][14][15]

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.[16] [17]

Awards, honors and board memberships

In 2006, Fuld was named #1 CEO in the Brokers & Asset Managers category, by Institutional Investor magazine.[citation needed] In 2007 he received a $22 million bonus.[18]

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 as on the board of directors of the Robin Hood Foundation.[19]

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.[20]

References

  1. ^ a b Peter Robison (2008-09-15). "Fuld's Subprime Bets Fueled Profit, Undermined Lehman". Bloomberg. Retrieved 2008-09-23. Fuld earned a BA from the University of Colorado and an MBA from New York University's Stern School of Business. {{cite news}}: Check date values in: |date= (help); Unknown parameter |coauthors= ignored (|author= suggested) (help)
  2. ^ Lehman files for Chapter 11 bankruptcy, TheStreet.com, September 15, 2008
  3. ^ "Lehman Brothers CEO To Speak At CU-Boulder Graduate School Of Business Commencement" (Press release). University of Colorado at Boulder. 2001-04-27. Retrieved 2008-09-29. {{cite press release}}: Check date values in: |date= (help)
  4. ^ Fuld's Air Force career came to abrupt end after he got into fist fight with commanding officer, The Times, September 16, 2008
  5. ^ [1]
  6. ^ Culprits of the Collapse - #9 Richard Fuld
  7. ^ [2]
  8. ^ Committee Holds Hearing on Causes and Effects of the Lehman Brothers Bankruptcy Retrieved 2008-10-06
  9. ^ Fuld's testimony (PDF) Retrieved 2008-10-06
  10. ^ "Lehman's Fuld to testify at congressional hearing" Bill Berkrot, Reuters [3] retrieved October 3, 2008.
  11. ^ http://www.businessandmedia.org/articles/2008/20081006150152.aspx
  12. ^ http://nymag.com/daily/intel/2008/10/about_the_richard_fuld_punchin.html
  13. ^ David B. Caruso (2008-10-17). "Prosecutors subpoena ex-Lehman CEO Richard Fuld". Associated Press via Google. Retrieved 2008-10-29. {{cite web}}: Check date values in: |date= (help)
  14. ^ "Former Lehman Brothers CEO subpoenaed". CNN. 2008-10-17. Retrieved 2008-10-29. {{cite web}}: Check date values in: |date= (help); Cite uses deprecated parameter |authors= (help)
  15. ^ Joe Sabo (2008-10-17). "Lehman Executives Including Fuld Subpoenaed, New York Post Says". Bloomberg. Retrieved 2008-10-29. {{cite web}}: Check date values in: |date= (help)
  16. ^ http://www.reuters.com/article/topNews/idUSTRE50P04A20090126, reuters.com, Retrieved on January 26, 2009
  17. ^ http://www.spiegel.de/wirtschaft/0,1518,603436,00.html,spiegel.de, Retrieved on January 26, 2009
  18. ^ Lehman CEO Fuld's hubris contributed to meltdown, Reuters.com, September 14, 2008
  19. ^ Lehman Chief: Subprime's End-Near; Pain-Not Over, Forbes.com, April 16, 2008
  20. ^ Lex Column (22-12-2008). "Overpaid CEO award". Financial Times: 12. {{cite journal}}: Check date values in: |date= (help)
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