John Thain, CEO of Merrill Lynch, has petitioned the company’s compensation committee for a $10 million bonus. The committee is considering it, but indications are that they are not willing to fly in the face of public sentiment during a period of bailouts for Wall Street firms.
Says Reuters,
Thain has said he deserves a bonus because he helped avert what could have been a much larger crisis at the firm, people familiar with his thinking told the WSJ.
I’m familiar with that kind of thinking. I often engage in it myself at night as I fall asleep. It’s called “fantasizing”.
Piece of Mindful 
Oligarchs remind us of possible motives for atrocities committed by Pol Pot and other revolutionaries who model after the French Revolution. Off with their heads – getting even with the perpetrators – masquerades as a “solution” of last resort in desperate times. If he’s smart, Thain may be planning to join Bush in Paraguay before he too is held accountable.
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Mark, you’ve always maintained that govt. acts more responsibly than the privaye sector. Well the govt. was supposed to watch over Freddie and Fannie, but instead let these bonuses and retirement perks pass thru like a thief in the night. Via Mortage News
>>>On the way out the door, Raines and Howard collected severance packages that turned more than a few heads.
At that time it was reported here that Raines would receive pension payments of $114,393 per month for the rest of his and his surviving spouse’s life and Howard would receive $36,071. In addition, both men were to receive lifetime medical and dental coverage for themselves, their wives, and any dependents under age 21 and corporation paid premiums on substantial life insurance policies. Mr. Raines’ medical insurance premiums were to be paid; while Mr. Howard was to pay at the reduced rates provided to all retirees.
As of the date his resignation was requested, Mr. Raines held vested and exercisable options to purchase a total of 1,628,071 shares of Fannie Mae common stock. The option price was exceeded by actual stock value by $5,545,270 and his”retirement” triggered an additional package of options to purchase some 380,000 shares at varying prices. The options are vested and will expire between May 2008 and January 2014. Mr. Howard held vested options that, if exercised immediately, would reap $4,395,864. Both men requested that they be allowed to time their actual separations so as to increase the value of their pensions and their options.
Last month the Office of Federal Housing Enterprise Oversight (OFHEO), the division of the Department of Housing and Urban Development charged with regulating Fannie Mae and its sister organization Freddie Mac, issued a scathing report on Fannie’s financial manipulations, stating outright that some of the motivation was to protect those executive bonuses.
The report stated that Raines had earned more than $52 million in performance and other bonuses from 1998 through 2003. This was in addition to some $38 million in salaries and other compensation.<<<
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I sure agree it’s disgraceful. But check the record – I think that Fannie Mae and Freddy Mac are private companies. I can’t imagine a government official taking that kind of bonus.
Look at the Guv of Illnois – he was selling thata senate seat for peanuts compared with what Wall Street second tier middle management types get as Xmas bonuses.
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“Xmas”, Mark? Just how low, will you go?
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You can’t begin to know … you and your white bread world can’t know what it’s like being a liberal blogger. We do what we have to do.
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“Peanuts”, you say? Last time I looked the Senate seat was in a bidding war.
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Cute link. But it is peanuts compared to CEO compensation.
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