No Bonus for Bear Stearns Execs

On the eve of announcing its first quarterly loss ever, top execs pass on bonuses
By Jim O'Neill,  Newser User
Posted Dec 19, 2007 7:41 AM CST
Top execs at Bear Stearns are skipping bonuses this year after a dismal year.   (Getty Images)
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(Newser) – Bear Stearns’ CEO and other top executives, poised to announce the company’s first quarterly loss in its 84-year history tomorrow, are expected to bypass millions of dollars in annual bonuses, an acknowledgment of the dismal year the firm had, driven down by the collapse of the subprime mortgage market and two internal hedge funds, the Wall Street Journal reports.

The move will allow Bear to use its shrinking bonus pool to compensate other key executive who otherwise might defect to rival firms. It’s also sure to impact the pay of some 15,500 employees who count on annual bonuses. Bear is expected to announce a $1.2 billion write down and a loss of up to $1.79 per share.