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Reid, Cuomo, Blast Merrill CEO's Request for $10-Million Bonus
The news that John Thain, the CEO of Merrill Lynch, has requested a $10 million bonus isn't sitting well with some prominent political figures.
A statement from Senate Majority Leader Harry Reid notes that in October, Merrill received $10 billion in bailout money. Reid then declares:
The TARP program, from which Merrill Lynch has taken billions of taxpayer dollars, was designed explicitly to limit executive compensation, bonuses and golden parachutes. While American families struggle to keep their jobs and their homes, I question the chutzpah of asking for a $10 million taxpayer-subsidized bonus. Americans deciding which bills to pay this month just to make ends meet do not want their hard-earned money even indirectly spent rewarding executives from banks that are largely responsible for the economic crisis. I sincerely hope that Merrill Lynch rejects this request.
Meanwhile, New York Attorney General Andrew Cuomo, who is conducting an investigation of executive pay on Wall Street, has written a letter to Merrill board members that makes similar points. Cuomo writes:
Paying executives at Merrill millions each in "performance" bonuses in this context [of a taxpayer-funded bailout of Wall street firms] would be oxymoronic to say the least and certainly a thumb in the eye to taxpayers. Enough is enough.
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Josh
Zachary
Why does the CEO of a company in such bad shape that it needs a bail-out by the government get ANY bonus? Doesn't needing a bail-out indicate that he was NOT a good manager? In fact, why is he still running the company?
Just like the car barons flying on private jets to beg for money, these guys do not get it. If we own most of these companies now, why don't we get to pick who runs them? I know at least a dozen people who could do a better job than this clown.
December 8, 2008 3:50 PM | Reply | Permalink
What's the problem--- without securing $10 billion in free government money, ML would be bust.
Thain earned every penny! I would suggest that a 1% fee would be more reasonable. $100 million for Thain-- it's the only decent thing to do.
December 8, 2008 4:01 PM | Reply | Permalink
Arrogance? No, not strong enough. Impertinence? Na... I got it, "chutzpah!" Please pity me, I'm down to my last billion.
Actuality I think, Mr Thain has done the taxpayers a favor. An example needs to be made out of him. Every taxpayer needs to know his name. Every Senator needs to call for his resignation.
Guillotine! Guillotine!...
December 8, 2008 4:11 PM | Reply | Permalink
Being CEO is hard work!
http://www.youtube.com/watch?v=bi8zyp1je9Y
December 8, 2008 4:34 PM | Reply | Permalink
This sounds like a caption to a picture from icanhazcheeseburger.com.
December 8, 2008 5:58 PM | Reply | Permalink
P.S. I meant that as a compliment.
December 8, 2008 6:00 PM | Reply | Permalink
Not that I believe anyone can possibly "earn" $10 million dollars - let alone should be able to - but Thain came into Merrill Lynch in October 2007 to clean up Stanley O'Neal's misadventure into the mortgage world (how's that for understatement). Thain did his best to get Merrill as far away from mortgages as possible, but the damage was already done.
While I don't believe he deserves $10 million for steering the company into BoA's open arms (also embracing subprime slime Countrywide), let's not lose historical perspective.
But he does have some cajones, nonetheless.
December 8, 2008 4:52 PM | Reply | Permalink
The CEO's are not the ones responsible for this financial meltdown. It is the Boards of Directors of these companies who hire these CEO's, provide them with direction, vote on their salaries and bonuses, and have the ability to fire them.
These people are still below the radar and are hiding behind the CEO's. The bonuses for the CEO's are for the CEO's to take the heat and to protect the members of the boards who have the ultimate responsibility.
December 8, 2008 4:53 PM | Reply | Permalink
That's like how Bush gets paraded around on the White House lawn while Dick and Karl tell Libby to violate the constitution. Too bad the stockholders (citizens) can't hold a vote of no-confidence.
I hear they're hiring this lawyer fella with some good ideas. Buy USA stock now while it's cheap, because it's going to jump around the middle of January.
I'm not kidding. http://www.bloomberg.com/apps/news?pid=20601087&sid=a4ieRPJ34pW8&refer=worldwide
December 8, 2008 6:04 PM | Reply | Permalink
PS.
I note that in Cuomo's letter, he does not name the members of the Board of Directors of Merrill Lynch.
Telling.
.
December 8, 2008 4:57 PM | Reply | Permalink
These guys are doing more to bury the Republican Party and the 'Trickle-Down Theory of Economics' than a hundred liberal pundits on cable news.
December 8, 2008 8:10 PM | Reply | Permalink
Hey I would have run the company into the ground for a mere bonus of $1 million.
I love these CEOs who destroy companies and then depart with huge parachutes, like Jill Barard at Mattel among others.
Unconscionable.
December 8, 2008 11:47 PM | Reply | Permalink