Think those executive bonuses at suriviving banks have politicians outraged? Wait until they find out that Lehman plans to pay $200 million to the 480 hired to unwind Lehman’s $639 billion in liabilities. That’s more than $415,000 per person working at the bankrupt firm.
The cost of liquidating Lehman Brothers Holdings Inc. may swell by more than $200 million as administrators recruit experts to help sell assets and close out trades.
Bonuses will be $103 million for 480 employees hired to administer and unwind history’s largest bankruptcy, in addition to base salaries of $80.5 million and severance of $19 million, according to court documents filed yesterday in New York.
The hiring costs will come on top of an estimated $1.4 billion in fees for lawyers, accountants and other professionals that will make Lehman’s bankruptcy the most expensive ever, besting the record set by Enron Corp. in 2004, according to calculations by Lynn LoPucki, who teaches bankruptcy law at Harvard University.
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