Ancient board games
Where Was Lehman's Board? Posted by: Emily Thornton on September 12
As Lehmans stock continued to spiral downward to close on Friday at $3.60a level the company has not seen for over a decade-- more investors started to ask the question that always seems to pop up when a company is on the brink: Where is the board of directors who were supposed to be guarding our interests?
As usual, the answer appears to be: supporting the companys CEO, instead of pushing him to make difficult decisions before the firms back is against the wall. Thats one reason whyunlike other financial firms like Merrill Lynch, Washington Mutual, and AIG that have tossed out their CEOs - Lehmans CEO Dick Fuld remains four months after giving the firms president and chief financial officer the boot on June 12. On Sept. 10, Fuld said the board has been wonderfully supportive in a conference call.
The writing has been on the wall that the board would behave this way for some time now. Veteran corporate governance researcher The Corporate Library gave Lehman a D and rated Lehmans governance risk high in March after examining its annual proxy statement
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