Paid to Fail
In a report just filed with the US court that is overseeing the bankruptcy of Lehman Brothers, a court-appointed examiner described how the firms' executives deliberately pursued an aggressive investment strategy, took on greater risks, and substantially increased leverage. In this way, they literally destroyed the company - but, worse still, they were paid to do so.
https://prosyn.org/jhPRaCu
CAMBRIDGE – In a report just filed with the United States court that is overseeing the bankruptcy of Lehman Brothers, a court-appointed examiner described how Lehman’s executives made deliberate decisions to pursue an aggressive investment strategy, take on greater risks, and substantially increase leverage. Were these decisions the result of hubris and errors in judgment or the product of flawed incentives?