While disgraced yet still money hungry A.I.G. executives were making headlines, one Wall Street kingpin quietly did the right thing. According to an article published by Bloomberg, private equity firm Lazard CEO Bruce Wasserstein asked his board of directors to forgo his usual annual bonus.

Even though Lazard is neither receiving any government bailout money nor teetering on bankruptcy, Bruce Wasserstein decided it was best to keep his bonus invested in his company. Bruce Wasserstein’s five-year contract grants him a retention award of 2.7 million restricted stock units that vest in 2012. This bonus would have represented a significant portion of Bruce Wasserstein’s income.

Bruce Wasserstein is not alone is displaying executive restraint and prudence in these difficult times. Goldman Sachs Group CEO Lloyd Blankfein and Morgan Stanley CEO John Mack have also declined bonuses. But the big difference is Lazard is not receiving one dime of public money, while both Goldman Sachs and Morgan Stanley each received $10 billion from the now infamous Troubled Asset Relief Program.

Bruce Wasserstein’s decision reflects financial sense. Like every other private equity firm, Lazard was hit hard by the economic meltdown of 2008, with its fourth-quarter net income dropping 36% to $38 million, or 50 cents a share, from $59.1 million, or $1.04 a year earlier.

Further Information on Bruce Wasserstein and Lazard:

The Charlie Rose interview of Bruce Wasserstein.

With profits up, Lazard defies trends.

Profile of Bruce Wasserstein on Private Equity & Finance News.

Vault has a comprehensive fiscal report on Lazard.