Thursday, October 08, 2009

Merrill Lynch’s Compensation Plan Is Lesson for Pay Czar - NYTimes.com

Merrill Lynch’s Compensation Plan Is Lesson for Pay Czar - NYTimes.com:
"Merrill program, which was supposed to align its top employees’ pay with the company’s long-term performance, did not keep workers from taking risks that nearly sank the brokerage giant. And some of its senior executives still stand to collect millions of dollars in stock under the plan.

As the Obama administration’s pay czar, Kenneth R. Feinberg, contemplates curbing compensation for the top 100 executives at each of the seven companies that received big bailouts — including Bank of America — the Merrill experience raises some sobering questions."


and later:

"Under the 2006 plan, top Merrill executives contributed a part of their bonuses from the prior year to an incentive plan that was then converted into stock. If Merrill did well, the firm doled out more shares to the employees at the end of each year. The plan was repeated over three years, and employees could not sell their stock until 2010."



My tew cents. People are REMMS. They will find ways to get around any regulation/pay plan we put in place.

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