Nobody expected bonus season to be comfortable, even with the financial crisis more than a year in the rear-view mirror. Yet, Goldman Sachs (GS) is getting sued over its compensation package, under which key executives are only compensated in long-term stock. In the latest development, John Mack, CEO of Morgan Stanley (MS), is skipping his bonus for the third year in a row, according to Reuters.

Mack isn't the first banking CEO to go sans bonus this year. Kenneth Lewis, top dog over at Bank of America (BAC) is getting neither a salary nor a bonus for 2009. Both plan to step down at the end of the year, though Mack will stick around Morgan Stanley as chairman. The last time Mack got a bonus was in 2006: he picked up $36.2 million in restricted shares.

A report today in The New York Post reveals that bailed-out Bank of America (NYSE: BAC) is still doling out millions in bonuses to attract and retain top banking talent. Bank of America is catching heat over the bonus payouts, since it hasn't yet received federal clearance to repay its $45 billion in TARP loans.

Bank of America allegedly shelled out $15 million over two years to keep Fares Noujaim, an alumnus of both Bear Stearns and Merrill Lynch, who now serves as the company's vice chairman of investment banking. Harry McMahon is named as another banker who's been enticed to stay with handsome bonuses.

Bank of America (NYSE: BAC) closed at $8.68. BAC said shareholders voted to remove Kenneth Lewis of his duties as chairman, he will continue as chief executive. BAC May option implied volatility is at 137; June is at 130; above its 26-week average of 122; according to Track Data, suggesting large price movement.

Financial Select Sector (NYSE: XLF) closed at $10.88. XLF top holdings in the fund are JPM, WFC, BAC, GS, USB, C, MET, TRV and AXP. XLF over all option implied volatility of 64 is below its 26-week average of 69, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Investors have had little reason to be hopeful during the past two years as the economic news seems to get more depressing by the day. But lately, the stock market has turned optimistic and investors begin the week bracing themselves for any word that the good times may not last.

Stocks appear poised to open higher as Express Scripts Inc. (NASDAQ: ESRX) agreed this morning to acquire Wellpoint Inc.'s pharmacy benefits management business for $4.68 billion, proving that the once-moribund mergers and acquisitions market is showing signs of life.

Citigroup Inc, (NYSE C), Bank of America Corp. (NYSE BAC), and JPMorgan Chase & Co. (NYSE JPM) are the crybabies of Wall Street. They are complaining vigorously to Congress about the tax on their bonuses.

Here's a sample of their complaints: Bank of America's Kenneth Lewis said the tax is "unfair" in a memo to his employees. Citigroup's Vikram Pandit said his bank is "working in every appropriate way with policymakers." Jamie Dimon of JPMorgan held a conference call with executives and said that he is working with lawmakers.

A report today in the New York Post suggests that shareholders are anxious to oust Kenneth Lewis, CEO of Bank of America Corporation (NYSE: BAC). The paper says that a group of angry investors, spearheaded by Jerry Finger, has compiled a list of demands to present at the bank's next annual meeting. Finger and his irate mob will request that the roles of CEO and chairman be split, and the outspoken investor said it's safe to assume that a brand-new chief executive is also high on his wish list.

Finger made headlines last month by filing a class-action lawsuit against B of A, alleging that its merger with Merrill Lynch failed to protect shareholders' interests. New York Attorney General Andrew Cuomo is now investigating that very same matter, and reports say that the AG may demand the return of $4 billion in bonuses to Merrill employees that were rushed through prior to the merger's completion.

Bank of America (NYSE: BAC) CEO Kenneth Lewis has received the dreaded vote of confidence from his company's board of directors.

In a statement, Bank of America lead director Temple Sloan said that "The board today during their regular meeting expressed support for Ken Lewis and the management team, noting their experience in managing through challenging environments and in assimilating mergers."

Is Mr. Sloan on crack? Ken Lewis has presided over an acquisition-fueled destruction of shareholder value that is almost without precedent in the history of the world. If Mr. Lewis has experience in assimilating mergers, it is only because he has made so many boneheaded acquisitions.

Bank of America (NYSE: BAC) posted 2008 net income of $4 billion, down from $15 billion in 2007. Its fourth quarter revenue was up 19% to $15.98 billion from $13.45 billion in 2007. But last fall Bank of America agreed to acquire Merrill Lynch -- which had a fourth-quarter net loss of $15.31 billion. And as an apparent condition of closing the Merrill deal, Bank of America has demanded and received about $120 billion from the government ($20 billion + the part of the $118 billion absorbed by the government).

The terms of Bank of America's deal mean the government will inject an additional $20 billion into Bank of America -- raising its holdings to $45 billion and making its 6% stake the single largest one. The government will also guarantee part of a pool of $118 billion in illiquid assets, including residential and commercial real estate and corporate loans. Bank of America will be responsible for the first $10 billion in losses; the Treasury and the FDIC will take on the next $10 billion in losses. The Fed will absorb 90% of any additional losses, with Bank of America responsible for the rest.

This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

In these troubled times, there is only one CEO who operates with the best interests of investors in mind. Of course, that executive is Warren Buffett.

As Investopedia notes, investing $100,000 with Berkshire Hathaway Inc. (NYSE: BRK.A) in 1965, the year Buffett took over the company would be worth nearly $30 million by 2005. "By comparison, $10,000 in the S&P 500 would have grown to only about $500,000," the site notes as if that return was just awful.

Buffett's successes are legendary. His missteps are few. The Oracle of Omaha is on the right side of many issues of interest to investors.