Were you a member of an elite group of individuals taken before their time known as the Lehman Brothers associate class of 2008? Were you robbed of the chance to toil under the Gorilla for more than a few weeks because oops the firm went out of business? (And speaking of that: do you blame yourself? Dick Fuld certainly does.) Those $40k signing bonuses you got and probably already spent are going to need to be paid back, ASAP.

The requests are allegedly coming from PricewaterhouseCoopers, which is administering Lehman’s estate in the UK. “More than 60% of my class received this letter around two weeks ago,” says one former Lehman associate. “We’re seeking legal opinions on whether we have to pay it back.”

Elaine Aarons, a partners who acts for senior executives at law firm Withers, says PWC might be able to extract the money from the unfortunate associates if the contracts were worded so that the loans were repayable if they simply weren’t in employment with Lehman 12 months on.
“Whilst it may seem unreasonable on a common sense basis to have to repay something that you’ve probably already spent when you have done nothing wrong, it’s not impossible that on a strict reading of the contract events have triggered the conditions in which a repayment would occur.”


Former Lehman associates allegedly being asked to repay $40k
[eFC via BI]

Comments (33)

  1. Posted by guest | November 20, 2009 at 10:39 AM

    brutal

  2. Posted by NakedShort | November 20, 2009 at 10:40 AM

    I am Bob Diamond! And I see a whole army of my bankers, here in defiance of tyranny. You’ve come to fight as quasi free first year analysts. And bonus babies you are. What will you do with that bonus? Will you fight?
    Aye, fight and you may die. Run, and you’ll live. At least for awhile. And dying in your beds, many years from now, would you be willin’ to trade ALL the days, from this day to that, for one chance, just one chance, to come back here and tell our enemies that they may take our lives, but they’ll never take… OUR BONUSES!

  3. Posted by guest | November 20, 2009 at 10:43 AM

    40K? Excuse me?

  4. Posted by guest | November 20, 2009 at 10:44 AM

    @3 yes? it’s not their salary, it’s a signing bonus. what do you not undertand?

  5. Posted by guest | November 20, 2009 at 10:45 AM

    only whore’s get signing bonuses

  6. Posted by guest | November 20, 2009 at 10:48 AM

    Brave heart ?

  7. Posted by guest | November 20, 2009 at 10:53 AM

    As smart as I am, that means I would have received a $400,000,000 signing bonus.
    ~Casano

  8. Posted by pfluger | November 20, 2009 at 11:05 AM

    Stop fighting it boys and girls. Resistance is utterly futile.
    Wall Street workers unite!!, and join the SEIU. Fight for what is rightfully yours!
    - Ken Feinberg

  9. Posted by Anal_yst | November 20, 2009 at 11:07 AM

    Naked, you sir either have a fantastic photographic memory and a book shelve piled high with movie scripts, or way, way too much time on your hands (not that I can criticize these days)

  10. Posted by guest | November 20, 2009 at 11:08 AM

    I mean, this is pretty simple. Assuming there was some language about how if they took a signing bonus they’d have it taken pro rata out of their paychecks over the course of their first year at LB it’s pretty obvious they have to pay it back if they’re not in employment. Shouldn’t matter whether they were fired or LB simply ceased to exist. Tough nuts.

  11. Posted by guest | November 20, 2009 at 11:11 AM

    I don’t get it.

  12. Posted by NakedShort | November 20, 2009 at 11:12 AM

    www dot imdb dot com; memorable quotes section
    It is the Bible for movie buffs

  13. Posted by guest | November 20, 2009 at 11:12 AM

    @11 are you a tard?

  14. Posted by guest | November 20, 2009 at 11:13 AM

    @naked seriously? what are you going to tell us about next? AOl mail?

  15. Posted by guest | November 20, 2009 at 11:13 AM

    “Elaine Aarons, a partners who acts for senior executives at law firm Withers,…” English? Grammar check broke today?

  16. Posted by guest | November 20, 2009 at 11:16 AM

    Good flippin luck getting it back. As you know, possession is 9/10′ths of the law. And the BMW dealer has possession of mine.

  17. Posted by guest | November 20, 2009 at 11:17 AM

    You can pay it back now, or we can just take it next April, your call.
    XOXOXO,
    O, Cyrptkeeper,& Princess

  18. Posted by NakedShort | November 20, 2009 at 11:18 AM

    @14 good point. Ill show myself out.

  19. Posted by law | November 20, 2009 at 11:31 AM

    They may not need to pay it back on the basis that they gave up another employment offers to take LB’s offer. In this case they were mutually committed.

  20. Posted by guest | November 20, 2009 at 11:44 AM

    @6 no not Braveheart, Gigli negro fucking Gigli

  21. Posted by Twistmytinkle | November 20, 2009 at 12:02 PM

    I agree with 20

  22. Posted by Ed Pound | November 20, 2009 at 12:35 PM

    Who knows where the signing bonuses went, man? Who really knows?

  23. Posted by guest | November 20, 2009 at 12:41 PM

    My CNBC signing bonus went up my nose.
    - L. Kuddles

  24. Posted by guest | November 20, 2009 at 1:31 PM

    Ever tried to get blood from douchebags?

  25. Posted by guest | November 20, 2009 at 1:42 PM

    Hah. Good luck getting any of this back.

  26. Posted by guest | November 20, 2009 at 1:52 PM

    See you in court bitches. No jury in America will give them a red cent.
    Counter sue for $500 Million for failing to buy enough government protection.

  27. Posted by guest | November 20, 2009 at 1:54 PM

    Read the clawback fine print.

  28. Posted by guest | November 20, 2009 at 2:15 PM

    @28 wrong story. Clawedbacks are for the next story down. MW

  29. Posted by guest | November 20, 2009 at 2:42 PM

    When you agree to receive a signing bonus, you’re selling a call on your services. If no one’s around to exercise the call, tfb for the option holder.

  30. Posted by Tax Chick | November 20, 2009 at 3:21 PM

    Nimwit @29 – signing bonuses have clawbacks. These are the good behavior provisions so if you turn out to be a complete asshole and run stark naked through the trading floor, they can fire you and take back the bonus.

  31. Posted by guest | November 20, 2009 at 3:44 PM

    @31 take your ADHD meds and read closer. @29

  32. Posted by guest | November 20, 2009 at 6:22 PM

    I know I’m late to the party on this thread, but I’m not sure what #10, et al. are taking about. My bank signing bonus was not repaid from my paychecks over the course of my first year, it was in addition my base salary. I understand that if you get fired in the first year you have to pay it back, and I am not objecting to that point. I was just not aware that any signing bonuses were “loans” amortized from your paychecks. Is that common with other banks?

  33. Posted by guest | November 23, 2009 at 8:04 AM

    I don’t know all the details but weren’t they set up as educational loans in order for not to pay income tax on them?

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