Heeding calls from Congress, Salomon Inc. has decided not to pay severance, bonuses or legal expenses to its former chairman and three other executives who resigned in the firm's bond scandal.
Thursday's decision came a day after Salomon's interim chairman, Warren E. Buffett, was urged at a hearing in Washington not to pay the former executives any more money."They deserve nothing but a swift kick in the butt out of Salomon Brothers and into the street," Rep. Jim Slattery, D.-Kan., said. "There should not be a dime spent to defend the wrongdoers."
Salomon Chairman John H. Guttfreund, president Thomas Strauss, vice chairman John Meriwether and general counsel Donald Feuerstein resigned last month after company officials said they had known of bidding violations in Treasury securities auctions since last April but didn't report them to authorities until August.