By now, everyone has heard the news. Merrill Lynch & Company will be bought by Bank of America.
The Bloomberg news just reported that the CEO of Merrill, Mr. John Thain and two former colleagues he recruited to join him from Goldman Sachs may reap almost $200 million for their year (and what a year it was) if they leave or are given a lesser role after Bank of America completes its acquisition of the brokerage.
Thain, who got a $15 million bonus when he was hired in December, stands to get an additional $11 million in accelerated stock payouts if he doesn’t stay after the deal. His friend and Trading chief Thomas Montag may get $76 million inclusive of bonus and accelerated awards. And Strategy head Peter Kraus was given $95 million (nice strategy there) including bonus and stock awards.
A Merrill spokesman declined to comment on this additional $200 million in what I call additional carnage for the company and the acquiring company.
To me, this is incredulous! I’d love to hear your comments.
Thank you for making me Your Orange County Real Estate Connection.
Best regards, Michael Caruso Broker ABRM CRB CRS
2007 President, Orange County Association of Realtors
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