Not sure how this works

The document shows that Italian banker Riccardo Banchetti, the former joint chief executive of Lehman in Europe and the Middle East, is claiming $26,040,000 (£16.4m), despite having held the job for only a few weeks before Lehman went into bankruptcy last year. Mr Banchetti, who did not move to Nomura following Lehman\’s collapse, is claiming for bonus awards and stock options going back five years.

But one has to admire the cheek.

One possible answer. Agree the claim and pay it in options granted at the pre-crash price.

I know, there\’s something I\’ve missed out there but still…..

One comment on “Not sure how this works

  1. “Agree the claim and pay it in options granted at the pre-crash price.”

    Wouldn’t the amount of those options have to cover more stock than exists in the company to make it worth $26m?

    Tim adds: That’s my point. Grant them at the pre-crash price. A claim for a tort is only ever compensated to the extent that you are put back in the position you would have been without the bad action on the part of the other. Lehman shares are now around $5 (yes, they are still traded and yes, they do have a value). If he had been granted his options at $100 originally, they would not be out of the money to the tune of $95. Fine, grant him his options at $100 and he’ll be out of the money to the tune of $95. He’s been made whole.

    This isn’t entirely serious, of course….

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