[ by Melanie Gretchen ] Jefferies Group's falling stock price hit home, felling CEO Richard Handler's pay by nearly 8% for fiscal 2011 after the investment bank’s shares declined 48% last year.  To his credit, Handler declined a $4.9 million bonus (without being asked!). Mr. Handler, 50, received $14 million for the fiscal year ended on 11/30/11, including $1 million in salary and $13 million in restricted-stock units that were granted in 2010.  The year prior, he was awarded $15.2 million for the 11 months through November 2010, the New York-based group said in a filing this week. Clawing Back Bonuses. Mr. Handler, Brian Friedman - who chairs the firm's executive committee - and other senior leaders returned their bonuses for 2011, the CEO told investors in December, citing a "tough year" for shareholders.  The firm gave employees a choice for the stock-based portion of their annual bonuses to accept the firm’s shares or take cash at a 25% discount. Mr. Friedman was granted a $10.5 million package for fiscal 2011, the filing shows, including a $750,000 salary and $9.75 million in restricted stock units that were granted in 2010.  CFO Peregrine Broadbent opted to receive $1.88 million. Insurance. Going forward, Jefferies will further "protect our scarce dollars” by clawing back 2011 bonuses from any employee who leaves for a competitor this year, Handler said in December.

[C-I Note: Kudos to Handler.  C-I followed his exploits throughout the MF Global affair, and it was Jefferies' bad fortune to have been integrally connected or associated with Corzine's collapsed firms - which made many people on Wall Street believe that Jefferies was within a whisker of collapsing, itself.  It never happened.  Nor should it have happened.

It's worth noting that Richard Handler was superb as CEO back in November and December, following the collapse of MF Global.  After Corzine's firm choked on its oversized bets on European sovereign debt instruments, Wall Streeters began talking aloud that Jefferies supposedly also held an oversized investment in those same securities.  We don't recall all the facts, but do recall that Jefferies was exposed to a lesser extent than MF Global.  JEF also had rock solid control of its customer funds.

After JEF shares declined significantly, Handler stepped away from his day-to-day responsibilities and mounted a enormous media campaign supporting his firm.  He saved the day and ensured that Jefferies would control its destiny on its own terms - and not on the terms and timing of others.

Conclusion - He probably deserves any compensation that was allocated to him - though to his credit, he saw that the firm needed the money more than he did.  He's the kind of CEO many people want to work for.  A firm's ethics and culture starts at the top, and Richard Handler does it right.]

For further details, go to [Bloomberg, 3/28/12].