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SECURITIES

From Times Staff and Wire Reports

Terms of Drexel, Joseph Settlement Revealed: Former Drexel Burnham Lambert Inc. Chief Executive Frederick H. Joseph would stay on as a $350,000-a-year consultant to the reconfigured company, according to the terms of a settlement revealed in bankruptcy court. Joseph would receive a $325,000 consulting fee if the new company picks up his option for a second year, or $225,000 if it does not. The amount was reduced from Drexel’s first proposal made last month to pay Joseph $450,000 for the first year as a consultant. Drexel said in court papers that it needs to keep Joseph, who worked for the company for 17 years, as a consultant to help it win lawsuits brought to recoup assets and also to defend claims brought against the company. Joseph, Drexel said, must be available “as a litigation strategist, an adviser and a historian of Drexel’s past.”


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