Moody's Says Jefferies 'Excessive' CEO Pay A Credit Risk

Law360, New York (February 4, 2013, 7:36 PM EST) -- Moody’s Investor Services said Monday that the $78 million compensation packages awarded to top executives at Jefferies Group Inc., including $19 million to CEO Richard Handler, presents risks to the investment bank’s bondholders.

The agency said the compensation awards, which made Handler the highest-paid CEO on Wall Street are “credit-negative,” meaning they could contribute to a downgrade of the investment bank’s debt rating, reflecting an increase in the likelihood of a default.

Jefferies has weathered the downturn better than many Wall Street banks years, largely sidestepping...
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