The vacation that greed took to make way for austerity on Wall Street compensation ended prematurely. Merrill Lynch (NYSE: MER) CEO John Thain wants a $10 million bonus and he wants it now.
Merrill's board is likely to give Thain nothing. According to The Wall Street Journal, "The difference of opinion between Mr. Thain and directors who hired him just a year ago is part of the bigger debate about compensation practices at Wall Street firms."
To characterize Thain's request as a simple matter of excessive pay making a return to Wall Street would be an oversimplification. The Merrill CEO has been on the job for a year. He was brought into a situation which was nearly untenable. The company was faced with mounting losses because of decisions made by earlier management. He may have saved the firm by selling it to Bank of America (NYSE: BAC). It is hard to compare that with other financial chiefs who have done little or nothing for their firms beyond letting their share prices fall and forcing government bailouts.
Thain may be one of the few senior executives on Wall Street who is worth the money.
[Update 5:10 pm: According to recent reports, Thain and other Merrill executives asked the board's compensation committee not to pay them for their work in 2008.]
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 9)
12-08-2008 @ 5:25AM
BHarrison said...
Well, John Thain can join the ranks of the "disappointed" . . . the man doesn't deserve ANY "BONUS".
It certainly doesn't require a genius to "sell" the corporation under the prevailing conditions, does it? It is time to curtail all of these ridiculously absurd exorbitant "bonuses". The CEOs should ALL be working for "reduced base salaries", and nothing more, until they can unequivocally demonstrate that they have accomplished a return to profitability for their corporations.
"Bonuses" should be substantially scaled down and ONLY PAID for extraordinary performance. The "gravy train" has crashed; there is no basis for paying these ridiculously exorbitant salaries, bonuses or "other compensations".
If these CEOs were to be paid commensurate with what they have accomlished or done, they would be fortunate to be paid $100K per year. The audacity of their "demands" should be a bais for terminating their employment. If they want to earn more money, then let them go out and become entrepreneurs; and then let's see how much they can actually earn by their work.
12-08-2008 @ 6:35AM
jesse said...
Daddy I want a goose that lays a golden egg and I want it nowww!!
12-08-2008 @ 8:01AM
John said...
Thain screwed things up and now thinks he should get a reward for a job poorly done? Why do inept and incompetent managers think they should be rewarded for not doing their job properly? He should have been sued by shareholders for fraud in taking his salary and not earning it!
12-08-2008 @ 8:46AM
nick said...
Go after the money O'Neil raped from the company.
12-08-2008 @ 9:33AM
Ben Dover said...
see my name---here's your bonus!!!!
12-08-2008 @ 9:08AM
Bob said...
Obviously this guy doesn't care about what America is currently going through . The corporate greed that is running rampid is driving me nuts. When will the stock holders demand more accountability of their boards and corporate execs and tie their earnings to performance ....the way it used to be. He deserves nothing! Nada! Zero! Zip! Kaput! Our corporate "leaders" are trying to build their "personal cushions" just like congress has been permitted to do over the years and look what we've got. Abunch of cover their ass do-nothings that promise the moon and deliver latrines. Come on people, who's going to bail us out, or give us a big bonus for doing NOTHING???? Wake up AMERICA !
12-08-2008 @ 9:11AM
KK said...
Yes Jesse - "Don't care how, I WANT IT NOW" :-)
12-08-2008 @ 11:55AM
joe said...
ALL THESE CEO'S ARE P I G S ALL THEY CARE ABOUT IS THEMSELVES!!
12-08-2008 @ 9:44AM
mrohiofats said...
BOO HOO cry me a river!!!! I cant really even imagine anyone getting that much money as a bonus. Just think what the over payed baby makes a year!!! Then stop and wonder why we are in the mess we are in now, The reason is right under our nose.
12-08-2008 @ 9:45AM
Jack Neoff said...
see my name! Thats what CEO'S of these companies have been doing to us for years!
12-08-2008 @ 9:49AM
mrohiofats said...
Profit=Bonus
So what is one of the companies ripping people off?? Just read the articial
12-08-2008 @ 9:58AM
nilvarg said...
I got your bonus right here John!!!
12-08-2008 @ 10:00AM
jane said...
Would love to see, just once, one of the CEO's actually entertain the idea of donating their bonus or some of their other millions to people suffering because of this crisis. These people haven't a clue. Pure GREED. Give money to the middle class and they will spend it and keep the bussiness in business. This is just buying time. If the middle class has no money to spend how will bussinesses stay afloat.
12-08-2008 @ 11:04AM
Thisisbs said...
I have had it with all CEO's. Not one is worth over $500/k a year. I am also, as of today, pulling what is left of my investments with Merrill Lynch for letting the board too even think about giving John Thain aka Norman Bates a bonus. The people must start taking action!
12-08-2008 @ 10:53AM
Leatherrip said...
Mr, drink water and eat air! 10 million my you know what! Starve like so many others are doing! Spoiled brat is what he is, and looks like it too!
12-08-2008 @ 11:03AM
Craponme said...
Don't even think aka, Norman Bates, you deserve a penny in these times! Take a long walk on a short pier. Merry Christmas you filthy animal.
12-08-2008 @ 11:12AM
John Martin said...
What surprises me is the boldness of these CEOs. You'd think they would keep quiet about bonuses during this economic distress, and wait until the next year or two and ask for make up bonuses. These people are so selfish and greedy and socially insensitive they just demand what they want, now! This is what a small child does.
12-08-2008 @ 11:37AM
Richard said...
If CEO John Thain could bring MER stocks back to $63-per share, then give him his bonus :-))
12-08-2008 @ 12:03PM
justme said...
this guy is kidding, right? Apparently not too bright either, knowing this is going to hit the media and be on every household tv set...while we wonder about our jobs, homes, and feed our families on generic products to pay our increasing heating costs. Mr. Thaine, you are, without a doubt, a very selfish and coldhearted ass. I hope you choke on your greed.
12-08-2008 @ 12:16PM
DAVE said...
$10,000,000,,,,,,,$10,000,000,,,,,FOR A YRS BONUS???? NOT HIS PAY,,,A BONUS,,, THATS OVER $28,000 A DAY,,EVERY DAY,,INCLUDING SAT AND SUN,,,OR $40,000 A DAY REGULAR WORK DAY. tHATS A LOT OF MONEY FOR SOMEONE WHO SAVES THE COMPANY,,RESCUES THE COMPANY,,IMPROVES SALES,,REINVENTS THE COMPANY WORK ETHIC, LOOKS FOR MORE WORLDS TO COQUER AND ADD TO THE COMPANY BANNER,,, BUT WHAT DID HE DO,,SELL THE COMPANY,,CUT AND RUN,,,ANY SALES MAN COULD DO THAT,,THE PLANT MANAGER COULD DO THAT,,HELL HIS ADULT SON OR DAUGHTER COULD DO THAT,,,AND HE WANT $10,000,000?
WHAT AN EGG HEAD,,,FIRE HIM,,,BANK OF AMERICA,,FIRE HIM,,,