Let's just call this the first installment of the bonus watch. Start big.
Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, said it will pay Chairman and Chief Executive Officer Richard Fuld an extra $186 million over the next 10 years.
Fuld was awarded grants a decade ago for about 2.5 million shares, which would have been payable if New York-based Lehman was sold. Instead, the board plans to give Fuld 10 annual installments of 246,395 shares starting next year provided he stays at the company, according to a Dec. 1 regulatory filing. Lehman shares rose 51 cents to $75.89 in New York Stock Exchange composite trading at 10:50 a.m.
Fuld, 60, has been in charge of Lehman since leading the firm's spinoff from American Express Co. in 1994. Shares of Lehman soared 10-fold over the past decade, outperforming rivals including Merrill Lynch & Co. and Bear Stearns. Fuld was paid $34.5 million last year, less than Merrill CEO Stan O'Neal and more than Bear Stearns CEO James Cayne.