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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.