So, apparently Attorney General Andrew Cuomo read this morning about John Thain's intention to take home a bonus valued at ten million dollars this year, while the ML dies in a fire. And, despite the birthday hangover, sat down at his word processor to compose some thoughts on the matter. Turns out he's not down with Thain's plans. Sayeth Andy:
On November 5, 2008, the Board responded and stated that any bonuses would be based upon a combination of performance and retention needs. In Iight of these factors, current reports that the Board is considering giving Merrill's Chief Executive Officer a $10 million bonus are nothing less than shocking.
Utilizing Merrill's own criteria, a bonus of this size appears unjustified. In terms of performance, Merrill has reported losses for every quarter this year and has lost more than $11 billion for the year as a whole. Indeed, Merrill's decision to be taken over by Bank of America seems to have been the only thing that saved Merrill from collapse.Clearly, the performance of Merrill's top executives throughout Merrill's abysmal year in no way justifies significant bonuses for its top executives, including the CEO. With respect to retention, it is our understanding that Bank of America has already determined that
Merrill's CEO will run the merged company's global banking, securities, and wealth management businesses. Thus, the need for retention does not appear to justify a substantial bonus for him.[...]
My concern is in no way meant to be a comment on any individual's personal capacity or
conduct, but rather is based on an institutional and policy concern. In this context, I represent the taxpayers who demand accountability, transparency, and responsibility. Taxpayers are being crushed by the losses on Wall Street and now are paying billions in bailout funds. Bank of America, for example, which is taking over Merrill Lynch', has received approximately $25 billion in TARP funds. Paying executives at Merrill millions each in "performance" bonuses in this context would be oxymoronic to say the least and certainly a thumb in the eye to taxpayers.Enough is enough.
If the Board does intend to pay its CEO and other top executives significant bonuses, we
would like the chance to first meet with you to discuss the justifications behind such
expenditures. Please let my Office know as soon as possible what the Board's intentions are.
Posted by bondguy007 , Dec 08, 2008 12:13PM
Who's got Big Balls? Thain's got Big Balls.
Posted by guest , Dec 08, 2008 12:24PM
Is it Sandra or Sarah Lee he has the hots for?
Posted by guest , Dec 08, 2008 12:26PM
@2- see birthday post. sandra, and he dating her.
Posted by guest , Dec 08, 2008 12:26PM
Cuomo is the new Spitzer.
Wonder what skeletons are hiding in his closet?
B!TCH!
Posted by guest , Dec 08, 2008 12:30PM
DO YOU SEE WHAT HAPPENS, LARRY? DO YOU SEE WHAT HAPPENS WHEN YOU &*%! A STRANGER IN THE #SS???
Posted by guest , Dec 08, 2008 12:32PM
Thain shoulda made to Cuomo's party and given him a handjob to smooth things over.
Posted by guest , Dec 08, 2008 12:34PM
That paragraph about retention is nothing less than shocking. "BofA has offered him a demotion, so there is no reason to pay him to stick around."
Posted by guest , Dec 08, 2008 12:56PM
Is Thain homosexual?
Posted by Tapecracker , Dec 08, 2008 1:00PM
Thain is omnisexual... he screws everybody.
Posted by guest , Dec 08, 2008 1:06PM
Yeah "ENOUGH IS ENOUGH!" I am sick of the children of politicians getting jobs though their daddies after never having had a real job and then getting mad at Wall Street.
Posted by guest , Dec 08, 2008 1:12PM
10, how many people on Wall Street would have that job if they didn't have a connection to daddy for a) the ivy league school they got into and/or b) the firm they joined.
Posted by guest , Dec 08, 2008 1:14PM
Thain created no value -- all he did was hit the panic button when he saw that Lehman was screwed. Ken Lewis was an idiot and overpaid. Thain deserves nothing. All he showed was that he was capable about lying about whether ML needed capital -- or he was too stupid to know that they did.
Posted by guest , Dec 08, 2008 1:19PM
@11
Not nearly as many as you've convinced yourself of. Let me teach you about life, son:
1. It's who you know
2. Timing is everything (except who you know)
Grow up.
Posted by guest , Dec 08, 2008 1:21PM
@11
Not me! I got this gig all on my own.
Posted by guest , Dec 08, 2008 1:42PM
Bess, Morgan Stanley just announced no bonuses, but call 3% compensation on those who bring in $500K or more in fees/commissions "Upfront liquidity award."
Now Cuomo can't sue! Hahaha!
Posted by BSD , Dec 08, 2008 1:42PM
@11 to echo 13 - while most slackers making $60k/year out of college would love to believe that Wall Street is full of daddy's boys the reality is that few ever get in that way, and those who do are ridden so hard by everyone in the office who hate them for their break that daddy's boys quickly pack up and become consultants at McKinsey.
Posted by guest , Dec 08, 2008 1:49PM
"Indeed, Merrill's decision to be taken over by Bank of America seems to have been the only thing that saved Merrill from collapse."
One merely needs to revise this sentence to read "John Thain's decision to sell the firm to Bank of America...", and the rationale for a bonus payment becomes pretty clear, no?
Posted by guest , Dec 08, 2008 1:50PM
@9 best comment of the day!!!
Posted by Tapecracker , Dec 08, 2008 1:52PM
Well said, BSD.
@11 - you know how I got in & why I'm still in the game? Because I spent 10+ years at a third party service provider getting shit on by mid-office monkeys; only to eventually prove to the desk that my skill set rode circles around their 'help'.
Put in the time, work hard, proove yourself, stay positive (this includes shedding your bullshit belief that those with the gold got it handed to them) and eventually (hopefully) someone in power might take notice.
Posted by guest , Dec 08, 2008 2:09PM
Oh my GAWD, I'm so inspired by this thread!!
Posted by guest , Dec 08, 2008 2:29PM
@11, I have no connections (I grew up as a poor immigrant) and managed to make it to the Ivies (either by luck or my own merit, who the hell knows). I don't know who you've been hanging out with to think Wall Street is filled with nepotism (though I'm sure there is some, as in all industries), but I suggest another crowd.
Posted by guest , Dec 08, 2008 4:26PM
Why is nobody talking about Tom Montag's 80 million+ bonus? 10 million dollars is nothing compared to what Montag is guaranteed and he only worked at ML for 3 months. He also had a 3 month paid vacation prior to starting at ML in August.
July 21 (Bloomberg) -- Thomas Montag got rich at Goldman
Sachs Group Inc., where he tripled the company's profit in Japan
in two years. He'll soon be $39 million richer, thanks to an
offer from Merrill Lynch & Co. Chief Executive Officer John
Thain.
Merrill shareholders and employees are waiting to see
whether Montag, 51, who starts work as head of trading and sales
on Aug. 4, is worth the $39 million bonus plus stock options
that Thain, 53, agreed to give his former Goldman colleague. The
options were to replace the Goldman ones Montag had to forfeit,
which were valued at about $50 million when the deal was struck,
said a person with knowledge of the matter.
``People will wonder why this company is spending more than
$80 million on an individual, when the high fees they've paid
out to executives up to this point have not gotten any benefit
for shareholders,'' said Richard X. Bove, an analyst at
Ladenburg Thalmann & Co. in Lutz, Florida, who rates Merrill
shares ``sell.'' He says he doesn't think Montag will have any
impact on shares of the third-biggest U.S. securities firm,