The Fuld Curve

Somehow a few days ago I missed the chance to mention Lehman chief Richard Fuld's congressional testimony. The congressional inquisition has become something of a ritual. We've seen it with Fannie and Freddie, and with failed telecom chiefs, and will see it played out again and again. The big show of political concern tends to hide that when all is said and done, the vast majority of executives brush off their suits and wind up just fine. To some extent that is as it should be: I am reluctant to say that every failed CEO, no matter how overpaid, should be sent off to priso, banana republic style.

Still, it's hard to keep your stomach from turning when somebody like Fuld whines about how he still had millions of shares of Lehman's stock and so "lost" some great fortune. Of all the corporate chiefs who never missed an opportunity to cash out, Fuld falls near the top of the list. So far, unfortunately, no one has taken up my proposal to name the equation by which CEO paychecks rise as their companies sink "the Fuld Curve."