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Greed returns to Wall Street -- Merrill Lynch CEO wants his bonus (update)

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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.

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Last updated: November 11, 2009: 11:09 AM

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