Merrill Lynch executive to get $10 million golden parachute as company slashes 500 jobs.
By on Oct 21st, 2008 at 5:31 pm
Merrill Lynch executive to get $10 million golden parachute as company slashes 500 jobs.
Merrill Lynch executive vice president Peter Kraus “is likely to leave with more than $10 million in compensation” after the company was bought by Bank of America last month. “He isn’t affected by a provision in the government’s rescue plan that curbs executive compensation, a person familiar with the situation said,” the Wall Street Journal noted. Bloomberg reported yesterday that Merrill Lynch “plans to cut about 500 jobs in its trading division as Chief Executive Officer John Thain shrinks the workforce to gird for a recession.”
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Well, isn’t that just special…?
Perhaps he ought to be forced to give that money back to us taxpayers.
October 21st, 2008 at 5:33 pmGreat Horny Toads! we got suckered again…….Thanks Mr.Paulson
October 21st, 2008 at 5:37 pmTo gird for a recession? But, but, I thought our economy was big and strong!
Fat cats beware! Angry citizens are watching!
October 21st, 2008 at 5:42 pmAnd John McCain wants to cut this poor man’s taxes…
October 21st, 2008 at 5:45 pmI can only hope that some of those whose jobs are being cut are in charge of “packing his golden parachute”. Perhaps there are some strings that have been cut.
October 21st, 2008 at 5:46 pmI’m sure those 500 hundred workers were more than happy to kick in $20,000 apiece from their severance packages to make sure Mr. Executive VP won’t miss out on any meals or have to sell the yacht or any of his multiple houses.
October 21st, 2008 at 5:46 pmI was going to comment along the lines of #7 – the 10 mill translates to $20,000 each for those who lost their jobs.
I wonder – what does the $ 10 mill mean to the executive ? A fancier car and another condo ?
What would $ 20,000 mean to the workers who lost their job ?
October 21st, 2008 at 5:48 pmHave we ever felt this powerless as a nation? Congress feigns outrage and gives $700B to those who have it all. Where’s the universal outrage against Paulson? He’s a crook posing as a caregiver.
October 21st, 2008 at 5:49 pmLet’s get real — $10 million is pretty paltry. Didn’t Carly Fiorino get more than double that?
/snark off
October 21st, 2008 at 5:51 pmFourteen Defining Characteristics of Fascism
#13. Rampant cronyism and corruption. Those in business circles and close to the power elite often used their position to enrich themselves. This corruption worked both ways; the power elite would receive financial gifts and property from the economic elite, who in turn would gain the benefit of government favoritism. Members of the power elite were in a position to obtain vast wealth from other sources as well: for example, by stealing national resources. With the national security apparatus under control and the media muzzled, this corruption was largely unconstrained and not well understood by the general population.
http://www.youtube.com/watch?v=VVVa1IvHdKc
October 21st, 2008 at 5:53 pmI’m not going to register to read the rest, but this guy Kraus is a recent hire and he’s going to get 10Mil? Hmm, smells like Pork to me.
October 21st, 2008 at 5:53 pmIt’s called the switch and bait as was shown in the movie Wall Street. Right now Paulson is giving 74 Billion dollars of the bailout money to Goldman Sachs and Citi Bank who both were not effected by the crisis. This is how the plan was going to be as planned by the White House when they appointed Hank Paulson in the job. This will be the biggest Crime and Scam this country has ever seen. The plan was outlined in 1998 when reporters were paid to attack Bill Clinton to lay the foundation for the 2000-2008 robbery and control of Foreign Oil. As American sit back an wait for Obama to get in office Bush/Cheney will complete the mission. The new World Leaders know what going on and will not get sucked in to the US plan. The World Leaders will work together and handle the problem without the US. Americans think it’s bad now we haven’t seen anything yet. The color of the new President’s skin will be least of our problems. Paulson will hand out every dime of the 700 billion dollars to Republican supporters and crooks who help during the 7 year crime wave.
October 21st, 2008 at 5:55 pmah, yes, the Fundamentals of the American Economy are strong indeed.
Once that money is transfered to an offshore perpetual trust, his heirs will live like princes, generation after generation after generation. Isn’t it somewhat heartwarming to know that so few can benefit so much from so many?
We have made them, these kings and princes. They live off the sweat of our brow and plunder from our children and we do nothing, giving silent acquiescence to their grandiose. Our elected leaders feign outrage, then go back to the feeding trough provided by the priviledged few to their handpicked servants of “the people.”
We have lost our Republic, our Liberties, our Freedoms. The beacon on the hill has become a searchlight into our homes.
October 21st, 2008 at 5:55 pmI’ve got an idea. How about we tax each of the board of directors for every dollar of golden parachute bonus they dole out while the company is sustaining losses.
That’ll protect the shareholders…
October 21st, 2008 at 6:06 pmLet’s see….10 million divided by 500 unemployed former employees, is uh……$20,000 each.
Sounds fair.
October 21st, 2008 at 6:08 pmOh he earned every penny of it….my ass…these are the crooks of our time and the average American will just sit and watch the propaganda tube and suck a few beers not knowing that he is being taken to the cleaners.
October 21st, 2008 at 6:09 pmJust ONCE! I’d like to see a board of directors give the 20 large to each laid off employee. Just wucking funce!
October 21st, 2008 at 6:13 pmChase Banks receive white powder in envelopes:
http://www.bizjournals.com/denver/stories/2008/10/20/daily12.html
Not anthrax, of course, but do you think Americans are just a little pissed off at the moment? You betcha!
October 21st, 2008 at 6:22 pmWhat? The $250 billion equity injection provided some controls over executive pay and golden parachutes. The NYT reported:
…the plan’s restrictions on executive compensation for the top executives. These include a ban on the payment of golden parachutes, repayment of any bonus based on earnings that prove to be inaccurate, and a limit of $500,000 on the tax deductibility of salaries.
So how did Bank of America, which took the money, get around the provision?
October 21st, 2008 at 6:25 pmOne can understand paying reasonable bonuses when businesses are doing well, workers are happy, and provided with health and good working conditions.
October 21st, 2008 at 6:32 pmHere we see corporations losing money,employees losing jobs, stock holders and bond holders taking the shaft, yet bosses keep getting bonuses in the millions.
Is that fair?
I don’t think it is fair,because the money that generated profit is the stock holders invested money, the workers were also behind the generated profit.
These corporate chiefs looting should be checked, and the game of croporate greed at the top should be examined to protect the public and put an end to this dangerous trend.
How many golden parachutes has Mr. Kraus received over time? Hasn’t his salary been adequate for all time, not just in these difficult times. So why not return the $10 million and the bank provide an additional amount so that the 500 people laid off can continue to have jobs. It so simple to have solutions when you look for the greater good.
October 21st, 2008 at 7:04 pmPut a tax surcharge on any one who makes a million or more in a bonus in a company not profitable.
October 21st, 2008 at 8:14 pmI completely understand why the French cut Marie Antoinette’s head off.
October 22nd, 2008 at 12:58 am.
This is how the Uber Rich rob the poor to line their pockets…
… You get Nancy and Reed to do it the Corporate way!!!
When Government controlls business, you get Communism.
October 22nd, 2008 at 2:05 amWhen Government is controlled by business, you get Fascism.
RFK Jr.
.
Q U E S T I O N:
If I can live off of 24K per year, why can’t Peter Kraus?
Sure, he’ll have to do some serious downsizing and make his wife and girlfriend get jobs, sell off a few properties and a few cars and maybe ditch the dog and not buy new underwear for a few years and shop for day old bread, but hey(!), if I can do it, Peter Kraus can!!!
.
October 22nd, 2008 at 2:08 amCan you say “Revolution”?
October 22nd, 2008 at 1:49 pm