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 5 of 9)
12-08-2008 @ 3:16PM
dick said...
To all you hypocritical people,
I guess none of you will supporting any of the actors or movie stars who make way more than they are worth by not going to any sporting event or movie and not turning that TV on. That should save you a pretty penny....
12-08-2008 @ 4:19PM
DONNA HOWARD said...
THE SUPER RICH LIKE, THIS GREAT AMERICAN, ARE TEARING DOWN OUR COUNTRY. THEY ARE MAKING THIS COUNTRY A "HAVE OR HAVE NOT" COUNTRY. . IF LEFT TO THE GENEROSITY OF THE RULING CLASS...THE ONES WITH THE MONEY ....EVERYONE WHO IS WORKING DOES SO ONLY AT THE MOST MINIMUM WAGES. HE IS A SUPER RICH LIZZARD AND WANTS MORE OFF THE BACKS OF GOOD WORKING AMERICANS. OUR TAX MONEY BAILING OUT THE RICH WAS A TRAGEDY. 10,000,000. I HOPE NOT...IF OUR GOVERNMENT DIDN'T NEED THE TAXES, THEN RETURN THE MONEY TO THE PEOPLE WHO IT BELONGS TO.
12-08-2008 @ 3:18PM
Cat said...
We the people of the United States of America, have the power. Not the congress, not the president, not the banks. Why don't we all learn to grow our own food. And stop driving cars, put the oil companies under our thumb, don't put any money in any bank except in switzerland, write only money orders, dont buy stocks of any kind, pay cash only for everything including your house. Why can't we take back our own lives by not supporting this ridiculous conglomerate of idiots who steal from every hard working american out there. and stop going to concerts or sporting events , and the cinema where actors and atletes, etc.. are overpaid drug addicts.
12-08-2008 @ 3:28PM
VJ said...
These MEN are PIGS! Obama and the Dems in Congress should repossess everything they own and put liens on their salaries and bank accounts. Get those unjustified payouts back into the pockets of the people. Bailouts for the uber rich---NO WAY---LET THEM EAT CAKE!
12-08-2008 @ 4:34PM
DONNA HOWARD said...
THIS LIZZARD DESERVES NOTHING...ISN'T IT BAD ENOUGH THAT HE RIPPED OFF AMERICANS ALREADY BY GETTING A SALARY PAID FOR BY THE TAX FUNDED BAILOUT. REWARDING BAD WORK IS NOT THE AMERICAN WAY. REWARDING BAD WORK IS BAD BUSINESS, DOES THIS RULE NOT APPLY IF YOU MAKE OVER A CERTAIN AMOUNT? SEEMS TO BUT I HOPE IT CHANGES.
12-08-2008 @ 3:24PM
carol said...
WHAT THE HELL MAKES YOU THINK YOU ARE WORTH EVEN 10 DOLLARS
12-08-2008 @ 3:25PM
ChadSnaggler said...
Why not give him a year's subscription to the jelly of the month club.
12-08-2008 @ 3:29PM
Seth said...
This is a perfect example of capitalism at work; and a perfect example of why capitalism is collapsing, all over the world. We have returned to the bad old days of the "robber barons," who ruled the nation with personal greed. Everyone snickered a bit and said "I told you so!" when Communism collapsed, virtually overnight; but it isn't so funny now, when "our" system is collapsing, just as they told us it would! Is there an answer? Yes. The perfect balance between social order and personal freedom is actually FASCISM, which has nothing to do with racism or police states. Don't take my word for it -- read "The New Fascism, An Idea Whose Time Has Come," available on Lulu.com. It's time to stop the madness -- the constant wars of conquest for oil -- and start with a "clean sheet of paper." Sir Oswald Mosley was right all along, and if you don't know who he was, then check out the Friends of Oswald Mosley site. "The war on want is the war we want!"
12-08-2008 @ 3:31PM
surfzen said...
Oh boy, I will never forget my first visit to Merrill Lynch's headquarters, hat in hand...what a bunch of slime. Yeah give him $10 million tax payer dollars he really needs it.
12-08-2008 @ 3:33PM
Pierpoint Windsor said...
Oh my Oh my-some folks expect this CEO or other like him to have, err, umm, what? A conscious, compassion for their plight or maybe common sense in consideration of those who have no hope of recouping what Merryl Lynch lost for them? Come on people, this is no human, this is a machine, as cold as a lamp post in sub-zero climate. Under his management people lost huge sums, being told by brokers repeatedly that all would be right and this was merely a temporary adjustment. Adjustment my buttocks-had we not stepped in a true human with a huge heart whose only fault is trusting people would have lost everything-as it was he lost plenty before being convinced to pull what remained out...
Nope, Thain be thy name, Thane-now seeking a Kings ransom for his ineptitude...Let this irksome rapscallion get in the long line of the unemployed-learn what eventually comes to many of the oh so high and mighty. The bigger you are the harder the fall. But then, as the article makes patently clear, John Thain is really a very little man....
12-08-2008 @ 3:35PM
TR said...
He cannot be as disappointed as all those who have lost most of their retirement security as a result of greedy and incompetent performance by all like him. I say fire him and give him a job in Congress - he would fit right in. TR
12-08-2008 @ 3:42PM
Michael McGurl said...
This CEO was all about greed. If he would have done his job properly the company would not have failed and gone into bankruptcy. He deserves a bad reference for his dismissal performance and absolutely no bonus because he failed as a CEO in his duties and obligations. The company was second to his personal greed.
12-08-2008 @ 3:36PM
Brad Zimmerman said...
Screw this silly clown! If I buy a gas station that the previous management has run into the ground and can't save it I get nothing! He tried- he failed! Learn from it and move on. FAILURES CAN'T DEMAND TOP DOLLAR!
12-08-2008 @ 3:41PM
susan said...
I'm sure Thain has enough money to live comfortably the rest of his days without the $10 million dollar bonus. As an investor, we need to start holding the company board of directors accountable for approving such outrageous bonuses. Let hope Bank of America kicks him to the curb, without the bonus, but it's highly unlikely.
12-08-2008 @ 3:41PM
jim kelly said...
THIS IS CORPORATE GREED AT ITS FINEST. I HOPE HE CHOKES ON HIS CHRISTMAS DINNER AND DIES AT THE DINNER TABLE IN FRONT OF HIS FAMILY.
12-08-2008 @ 3:47PM
GW said...
I would have bankrupted the company in half the time it took him for half as much money. Hire me and save big!!!!
12-08-2008 @ 4:17PM
Bob Williams said...
Merrill Lynch & Co Chief Executive John Thain's request for a 2008 bonus of $10 million should be denied, and the Treasury should publicly speak out against any bonus at all. In fact, Mr. Thain should be fired for incompetence and insensitivity to his company's financial situation, it's necessary merger with Bank of America, and the bailout by taxpayers. This is unmitigated gall and typical of the greed by America's top executives. We urge you to take immediate action and speak out strongly against this. In fact, no company that is receiving federal bailout funds, such as Bank of America, should allow any of their aquired companies' executives to receive bonuses.
12-08-2008 @ 3:51PM
Rucy said...
The President of the US - makes $400,000 year. NO ONE is worth a $10 million dollar BONUS! NO ONE! Not athletes, movie stars, - NO ONE - should be paid that much for anything! It's insane!
We have a minimum wage, it's now time for a maximum wage - especially for greedy CEO's & Wall Street.
12-08-2008 @ 3:50PM
Andrew said...
A "bonus" is just that ... a bonus. It's not a part of one's salary, and it should never be expected.
If one feels they got less of a bonus than they deserved, they can leave the company.
Is it more complicated than that?
12-08-2008 @ 3:51PM
J.Fred Bremer said...
Most of the jobs around here. After one year, you get a three day paid vacation.