Watching Fuld being questioned this morning, I thought, granted he is an a$$ and caused this company to fail, but what about the Board of Directors? I have not heard one word about holding them responsible. My understanding is the Board of Directors is legally responsible to govern a corporation. They elect the chief executive and review and evaluate this person’s performance " they can fire this person as well. The Board is typically responsible to provide fiscal accountability, approve budgets, etc. so I would assume they approved Fuld’s compensation and must have thought his performance was pretty good. Why isn’t anyone hauling their a$$es in?
What experiences I have had with Board of Directors is when an opening occurs, potential members are suggested by current members " usually golfing buddies. Often times (in my opinion), these individuals are not qualified for the position. I know of one Board member who asked what an asset was during a meeting. The paralegal taking the minutes was told not to put that question in the Board’s minutes. There are some qualifications though " to be a disinterested member, you need to already earn a huge salary as the fees you receive for being on the board cannot be your primary income (and believe me they make a bundle on these fees " they also get all sorts of things expensed " I’ve seen the expense reports first hand and they expense everything even cans of soda. Often times they are real a$$holes too depending every little thing. One board member had the paralegal running out to get diet caffeine free coke as they only had on hand diet coke, caffeine free coke, but not the exact combination he wanted.
To contact the Lehman Board see below: