The CEO of Bear Stearns (NYSE: BSC) was golfing during part of the credit crisis at his firm. Now, he will have a lot less for greens fees. James Cayne and several other big shots at the firm have agreed to skip taking bonuses this year.
According to The Wall Street Journal, "By forgoing their bonus pay, executives at Bear are hoping to increase their ability to compensate key players within the firm." The investment bank is expected to announce a loss for the last quarter.
It is about time that someone took responsibility for investments made in risky mortgage-related securities. Bear Stearns has been hit harder than most. So far this year, shares in the company are off about 42%.They could drop further when the latest earnings are released.
CNBC reports that the Bear Stearns board may be looking for a successor to Cayne. If so, he will go out with class.
Douglas A. McIntyre is an editor at 247wall st.com.
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