Days Before Bankruptcy, Lehman Brothers Approved $100 Million Parachute

The Times of London says that a mere three days before Lehman Brothers went bankrupt, the firm approved $100 million in payouts to departing executives.

The executives never received the payments – detailed in internal Lehman documents seen by The Sunday Times – because the company filed for bankruptcy protection the next working day, September 15.

According to Tony Lomas, the lead administrator, they will now be treated as unsecured creditors.

Ouch.

Failing Lehman in $100m payout plan
[Times of London]
(Photo: scurzuzu )