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December 2, 2008 11:24:07 AM CST

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No Bonus for Bear Stearns Execs

Posted Dec 19, 07 7:41 AM CST in Business 

(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.

Source Wall Street Journal

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Top execs at Bear Stearns are skipping bonuses this year after a dismal year.   (Getty Images)
This is an undated handout file photo of Bear Stearns Cos. Inc. chief executive James E. "Jimmy" Cayne. (AP Photo/HO/Bear StearnsCos. Inc., file)   (Associated Press)
The logo for Bear Stearns is shown at its corporate headquarters in New York, in this July 18, 2007 file photo. Bear Stearns Cos., the nation's fifth-largest investment bank, on Wednesday, Nov. 28, 2007...   (Associated Press)
People enter and exit the Bear Stearns corporate headquarters in New York in this July 18, 2007 file photo. Bear Stearns Cos., the nation's fifth-largest investment bank, on Wednesday, Nov. 28, 2007...   (Associated Press)
Top executives at Bear Stearns have decided to skip bonuses this year after a dismal year on Wall Street.   (Getty Images)
Top executives at Bear Stears have decided to skip bonuses this year after the firm had a dismal year.   (Getty Images)
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