Bear Stearns CEO Forced Out By Angry Shareholders, Common Sense

Bear Stearns CEO James Cayne is expected to step down as CEO due to pressure by pissed off shareholders , reports the Wall Street Journal.

James Cayne, the chairman and chief executive of Bear Stearns Cos., under fire from shareholders since the Wall Street firm was badly burned by the downturn in the mortgage market, is stepping down as CEO, say people familiar with the matter.

Bear Stearns’s stock has lost more than half its value in the past year, and some directors had been privately discussing Mr. Cayne’s departure. They had been hoping that he would take the initiative and resign, but didn’t want to pressure him, given his long service to the firm, say people familiar with their thinking.

“He thought about it, and the board thought about it, and they agreed it was time to pass the baton,” says one person familiar with the deliberations.

At least one major shareholder has been calling for Cayne’s head, said the WSJ. Mr. Cayne will join the former CEOs of Citibank, Merrill Lynch & Co., UBS, and H&R Block on the list of casualties attributed to the subprime meltdown. The Wikipedia entry on Mr. Cayne claims that he is a world class bridge player and suggests that he enjoys smoking marijuana. We wish him luck in his future endeavors.

Cayne to Step Down As Bear Stearns CEO [Wall Street Journal]
(Photo:AP Photo/HO/Bear Stearns Cos. Inc.)

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  1. Leiterfluid says:

    Speaking of ousted CEOs
    [710kiro.com]

  2. ageshin says:

    I wonder just how much Mr. Cyne will make on this deal.

  3. laserjobs says:

    And still remain as chairman!!! WTF!!!

  4. mac-phisto says:

    At least one major shareholder has been calling for Cayne’s head

    see, there’s still some sense in the corporate world. stop bribing execs to leave & start lining the board room foyer with the skewered heads of the f-ups.

    then liquidate his $1/2 billion in shares & consider it restitution.

  5. Chairman-Meow says:

    But I need to desperately know if the Board is “Taking is very seriously” ?

  6. econobiker says:

    Cayne had fired his second in command who had tagged along with him during an August bridge tourny… What kind of scum is that? “Come with me for the tournament but you should have been more aware of the markets. You’re fired.”

  7. char says:

    I am curious to see the amount of gild encasing his parachute…

  8. ARP says:

    To any corporate board of directors out there, I’m happy to be your CEO. You only have to pay me $3M a year and a $5M parachute to make all the same horrible mistakes. That’s a huge savings to screw up your company just as bad. Any takers?

  9. il1lupo1970 says:

    …i’ll be ceo for $2m/y and i don’t need a parachue. i’ll bring my own. any takers?

  10. skittlbrau says:

    His parachute will be made of gold and reefer. Go Jimmy!

  11. magus_melchior says:

    Now if only they would require those executives that have gold parachutes to actually use them in a literal sky-dive…