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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Reader Comments (Page 9 of 9)
12-08-2008 @ 5:21PM
SOUTHERN BOY said...
SOME PLEASE HIM SANTA CLAUSE IS DEAD AND TO GET OVER IT !!!!!!!!!!!!
12-08-2008 @ 5:38PM
h ducic said...
Once again the greed and down right arrogance rears its ugly head again in wallsteet.The CEO need a bonus allright and it should be a boot in the you know..Anyone can sell off a company it takes a manager to run a company
12-08-2008 @ 6:06PM
Pat Donley said...
greed is what has caused all these problems,a.i.g had two parties at a cost of nearly one million dollars after thier bailout,am i missing something
12-08-2008 @ 6:25PM
jamesnpost said...
What makes these guys think they are worth millions, when they can't run the ball, they can't hit the ball, they can't shoot the ball, and they can't control the BALL! Christ, don't they get it? BALL PLAYERS are worth millions!!
12-08-2008 @ 6:40PM
Jay said...
Poor John Thain. Got $15M for 30 days work last year. Maybe he wasn't behind MLs collapse but he did NOTHING to even slow it down except lie to shareholders and the media about how bad the balance sheet really was. Yeah, he brokered a deal but probably included a big signing bonus for himself! Trying to wring out a bonus shows the lack of integrity of Thain and his ilk. Maybe now the employees can now get a couple of thou for a Holiday party? No, that would look bad to the taxpayers but $10M is cool? All these jerks need to be in jail. j
12-09-2008 @ 5:05AM
LisaSD said...
Maybe he will take the $10 Million and get his oversized jaw fixed! Mine is on the floor in shock because he thinks he deserves it!
12-08-2008 @ 7:52PM
Jim Zola said...
These CEO pigs are no better than any other working man. They put their pants on one leg at a time. Half of them are wearing piss stained pants. 50% of the time they make wrong decisions, 50% of the time they make money. Any jerk can do it. The sad part is, even when they f*** up, they still get the big bucks.
Hire me and I will play the guessing game for a measly one million dollars.
12-13-2008 @ 12:34AM
Irish said...
People are WAY TOO full of themselves. There isn't one person in this world that deserves to be paid $ 10 million dollars AT ALL, let alone after 1 year of service. Thain personifies exactly what is wrong with mankind. May his greed come back to haunt his conscience throughout eternity.
12-14-2008 @ 1:24AM
Judy said...
no one else exists in the world, that's how these guys function. he probably is in debt more than 10 million $ and is having a stroke not getting the money.
thing is, their lifestyle demands this kind of dough and sucks up bucks like a sponge. it's easy. you get a yacht, you get a plane, you get three houses, one in france and put the rest in a hedge fund. you're way over your head.
so they can't sleep any better than the rest of us. only the big billions sleep really good.
and, the carts are coming to get them. i'll bring a sandwich and my knitting. (it is a far, far better thing that i've done...)
12-19-2008 @ 8:18PM
bill said...
Thain may be worth the money he's asking for? You should be ashamed calling yourself an author with a comment like that. Because of idiots like you we are in the mess were in. I understand you had a lot of help from all our crooked politicians in office but still thats no reason to make such a stupid irresponsible comment.
12-20-2008 @ 12:33PM
doug said...
Toss him into a nosh pit of stockholders (or just us regular folks who hate him and all his kind) and let him be torn limb from limb. Same for the rest of the thieves and traitors who have cast our country into ruin.
12-20-2008 @ 12:43PM
doug said...
NO ONE is worth ten million dollars a year. No CEO, no entertainer, NO ONE. And we are all fools for letting them get paid this kind of money when our children need educations and our roads and bridges and railroads decay and collapse. TAX THE RICH UNTIL THEY ARE DEAD!
12-22-2008 @ 3:25PM
Quiltpen said...
Give me a break!
Mr. Thain,
What makes you more special than the ordinary man on the street who performed his job tasks in the same manner as you.
He didn't get a bonus and you better wake up and smell the roses. You are not going to get one either....
1-24-2009 @ 3:47PM
Joe said...
In an economy of unbridled capatilism greedy out-of-touch executives are a dime a dozen. Supply and demand dictates that it's harder to get a good doctor or trustworthy car mechanic these days. If we did a serious re-think of what our society needs to get out of this economic mess, guys like Thain wouldn't be trusted to handle the cash at a McDonalds drive thru window.
2-01-2009 @ 9:19PM
cohenu1 said...
If you are sick about it, like me, write your senator to have them return it. I posted links to our senators' email addresses and a template letter here: http://returnthebonus.com/