Merrill Lynch Executive To Get $10 Million Buyout

A top executive at Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz), which last month accepted a takeover offer from Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), is likely to leave with more than $10 million in compensation, people familiar with the situation told the Wall Street Journal.

Merrill's strategy head and former Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) executive, Peter Kraus, will not be included in a broader announcement, expected as soon as this week, that top executives are staying once the purchase is completed by year-end, sources told the paper.

As a result of the takeover, terms of Kraus's contract have changed and will trigger an exit payment, the Journal said. Sources told the paper that Kraus was owed this money and would have collected it eventually even if he was staying with bank, and would now leave with as much as $25 million.

Read the whole story here.

Comments

[Blog322]

The media needs to follow-up on the Peter Kraus / Merrill Compensation severence story. How could Thain ever give an X-Goldman buddy a $10Mil deal. It is beyond outrageous. Further, check the facts -- the guy was not lured away from Goldman, he was fired from Goldman after loosing a huge sum for the firm --- so it is ridiculous that the media is reporting that he got this deal to compensate for what he left on the table. He didn't have a job, and he went to his old buddies looking for a job. What a joke. Good work if you can get it -- certainly beat WPA for the unemployed. If Merrill pays this guy $10Mil for a few days work, Thain & Paulson should be held accountable and reimburse Merrill Employees & Shareholders & Taxpayers from their own pocket. Stop the insanity!

[Baltotoast]

Just a thought..all this discussion about abrogating labor contracts...this is exactly what would need to happen if the government were to mandate renegotiating mortgages - those are contracts between the borrower and lender. Do we really want our government messing with our contract law - talk about a slippery slope - don't like a business contract - just get the government to break it....

[rudyinbama]

Paging Madame Defarge.

[Mnemanth]

"We the People..."

Who said he get's to just walk away? He may think he does, they all may think they can...
But in this increasingly hostile country, I wonder how much time he'll have to enjoy his millions.

I'm betting a time is coming soon where he better be living in some fortified compoud somewhere, as his hungry and homeless neighbors are going to be a bit upset over his little windfall.

Just did a little math: At my current salary, it would take me over 200 years to earn $10,000,000. Nah, his benefit isn't inflated or anything. Glad to see my tax dollars at work....

[helonias]

So if I drove a very expensive bus and wrecked it would I still get paid?

[KillTheMessenger]

Yes.

[Durango]

Speaking as a bus driver.

Not only would you not get paid. You would get prosecuted.

And the story of your bus crash would make headlines around the world.

[RoveRoveRoveYourBoat]

...what shame and tragedy for he and his family.

[peacegurl48]

Corporate Welfare and Socialism for the Rich...absolutely obscene.

[nellie]

Is this where our bailout is going?

[larry278]

I don't suppose that the creatures who get these obscenely bonuses &/or platinum parachutes may be barred from any future activity in finance from selling subway fare cards to Wall St & Int'l markets.

[josephXY]

for oldies fans (not in order to be nihilistic about such matters)
there is a 60's hit on You Tube:

+Tremeloes: Hello Buddy+
http://www.youtube.com/watch?v=HKKxr_iRUO0
(.... it's a shame and a sin making all the money on your own ....)

One can consider it a good-natured, quite melodious, protest song

[francoise]

Those lawyers in Merrill Lynch who supervized the hiring contracts with these huge no-condition golden parachutes are just lousy lawyers for their employers.

They should be working in Trade Unions.

[RoveRoveRoveYourBoat]

...the lawyers work for the shareholders!!! The employees are represented by no one. Don't you know how corp. feudalism works?

[MizLiz]

Pornography doesn't begin to reach this level of obscenity.

[KillTheMessenger]

And yet, investment shows on tv are allowed at any time of the day, while full frontal nudity is a no-no in America.

:-)

[PacificGatePost]

HUMANS ACTING HUMAN

HOWEVER THE PAIN IS PAINTED OR PRESENTED, TAXPAYERS FOOT THE BILL

Billions were made through this bubble, and there is plenty of blame to be spread around, however, where will the magic come from to REALLY solve this mess?

http://pacificgatepost.blogspot.com/2008/10/leadership-missing-in-action-dont-blame.html

[pjburns11]

Whichever candidate goes after these thieves will win he election. I wonder why neither one will???

http://thetruthburns.wordpress.com/2008/10/14/whoever-goes-after-the-wolves-of-wall-street-wins/

[PacificGatePost]

UNFORTUNATELY, the list of those in Congress who enjoyed Fannie's and Freddie's beneficence includes Democrats and Republicans, and is deep and wide, although, Dems received almost three times the amount received by Reps.

TOP RECEIVERS of Fannie Mae and Freddie Mac Campaign Contributions:¨¨

Dodd, Christopher - Dem. $165,400 ¨

Obama, Barack - Dem $126,349 ¨

Kerry, John - Dem $111,000

Although Dems took the majority of this money, some Reps. did as well. No wonder all are looking the other way.

TIME FOR A RADICAL CHANGE IN THE ELECTORAL PROCESS

Taxpayers deserve independent representation with teeth. NOT suppliant gofers taking orders from special interests.

http://pacificgatepost.blogspot.com/2008/10/electoral-process-urgent-change-is.html

Will either candidate bring this up? Not likely.

[jdfast]

No, they will not bring up this fact. There was a good article in our paper from the AP of all agencies that said in 2005 Chuck Hagel introduced legislation to set limits on what Freddie and Fannie could loan because they could see the clouds on the horizon. But guess what, officials at Freddie hired CID to lobby for them and paid them 2 million dollars to buy the votes of some Republicans which they did and the legislation died. The owner of CID is now McCain's campaign manager. They bought the votes to keep the legislation off the table and look at us now. The Dem's didn't want the legislation because they wanted to continue to give away free money for people to purchase homes that they couldn't afford so they weren't lobbied. How does this little tid bit make you feel? F--k them all. Vote out all of the incumbents.

[rosiebond007]

NO, NO, NO
See, the minute they feel secure with OUR money - they start enriching themselves again.
I didn't support the bail out in the first place and these golden handshakes need to be recinded.

OR .............. WE COULD HIKE THEIR TAX RATE !!!