Merrill to Give Thain $15 Million Bonus

Merrill Lynch has agreed to grant incoming Chairman and CEO John Thain a cash bonus of $15 million for the fiscal year 2007, reports Business Week.

 

Thain, currently the CEO of NYSE Euronext Inc., will receive the bonus when he joins the company on December 1 on top of an annual salary of about $750,000, a sign-on equity award of 1.8 million Merrill stock options, and 500,000 restricted stock units, according to Business Week.

 

Under the agreement, Thain, whom Merrill chose last week to succeed former Chairman and CEO Stanley O’Neal, will receive the stock options and restricted stock units with value and terms identical to the NYSE options and units he is forfeiting.

 

While Merrill’s board will determine Thain’s future bonus compensation annually, he will not be entitled to any severance or pension benefits, nor to a change-in-control severance agreement or perks, other than a car and driver.  He will be granted use of the company’s aircraft for business purposes, according to Business Week.