This appointment has unfortunately missed a good opportunity to separate the Chairman and CEO roles. These roles are both important but different and should be held by different individuals.
Compensation for performance is good, even significant compensation for significant performance is good. I have no quarrel with that concept.
A balance at the top is good governance and, with all due respect for John Thane and his ability, the Merrill Lynch board has failed to achieve good governance in this very important respect.
Onésimo Alvarez-Moro
See article:
Merrill Lynch said today that it had agreed to award its incoming chairman and chief executive, John A. Thain, a cash bonus of $15 million for 2007 after he joins the world’s largest brokerage on Dec. 1.
Merrill’s announced on Wednesday that Mr Thain, the NYSE Euronext chief executive, would join the firm. The appointment came just two weeks after Merrill’s former chief, E. Stanley O’Neal, was ousted following steep third-quarter losses.
Merrill Lynch said in a Securities and Exchange Commission filing that the cash award recognizes that Mr. Thain will not receive a bonus from NYSE for the year.
See full Article.
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