Disgraced Lehman CEO Fired

Face of the financial crisis 'terminated,' will stay on board of directors
By Peter Fearon,  Newser Staff
Posted Nov 6, 2008 3:13 AM CST
Lehman Brothers headquarters in New York. CEO Richard Fuld, who led the brokerage into disaster, has been fired.   (AP Photo/Mark Lennihan)
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(Newser) – Lehman Brothers boss Richard Fuld, who led the giant 158-year-old Wall Street brokerage firm into bankruptcy, has been abruptly terminated. The 62-year-old Fuld, who earned $484 million from Lehman over the last eight years, won't receive a bonus or severance payments, but will keep his salaried post on the board of directors when he leaves as CEO the end of the year, reports the New York Daily News

New York's state controller called Fuld's removal a "good first step" in safeguarding shareholder interests, and blasted "disastrous strategies" by Fuld that led the company "toward ruin." State retirement funds hold nearly 5 million Lehman shares. "The leadership that ran the company into bankruptcy should not be running the company during bankruptcy," said the controller, who filed a motion in court this week demanding Fuld's ouster.