September 6, 1991

In a stunning break with its past management, Salomon Brothers Inc. announced yesterday that it would pay no compensation, severance or future legal expenses stemming from the Treasury markets scandal to the four senior executives who have resigned, including John H. Gutfreund, the former chairman who built Salomon into a bond-trading giant. The decision, reached at an early morning meeting yesterday by the firm's board, would also end compensation and payment of legal expenses to Thomas W. Strauss, the former president; John W. Meriwether, a former vice chairman, and Donald M. Feuerstein, the former general counsel. The men, or lawyers for them, all declined to comment.

The Unisys Corporation, one of the nation's largest military contractors, has agreed to pay a record $190 million to settle charges stemming from the Justice Department's investigation into procurement fraud and bid-rigging on Pentagon contracts, Government and industry officials said today. The settlement, which is to include fines and future profits, is to be announced Friday when Unisys pleads guilty to an array of felony and civil charges in Federal District Court in Alexandria, Va., the officials said.

Shearson Lehman Brothers announced yesterday that it had suspended two executives in its equities trading group because of trading violations in connection with a Conagra Inc. stock offering last November. Peter DaPuzzo, a senior executive vice president and co-head of Shearson's Worldwide Equities division, and Manny Geronimos, an executive vice president in the same group, were suspended. Jack Rivkin, co-head of the equities group, will have sole responsibility for the division.

Shortage of Cleanup Fund Seen for Weapons Plants The Department of Energy said it could cost much more than it expected to clean up polluted nuclear weapons plants and estimated it would receive nearly $12 billion less than it needs to finish the job on schedule. Page A16. Accord to Bar Pesticide The maker of a pesticide linked to illness among farm workers agreed to sharply reduce its use by the end of the year. The Government will then move to ban it entirely. Page A16. Iran-Contra Indictment? Clair E. George, a former high official of the Central Intelligence Agency, may be indicted today on charges he lied to Congress. Page A16. Connors In; Sampras Out Jimmy Connors gained the semifinals, but defending champion Pete Sampras was knocked out of the U.S. Open. Page B7.

Congress is likely to heed the Bush Administration's plea to postpone consideration of an Israeli request for $10 billion in housing loan guarantees until late this year or early next, Congressional leaders said today. Lawmakers said the delay would accommodate a request made Wednesday by Secretary of State James A. Baker 3rd to postpone consideration until after a Middle East peace conference planned for October. The Administration's eagerness to put off consideration of the measure despite Israel's desire for immediate action was based on fears that processing the loan guarantee request could complicate planning for the conference.