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business newsCuomo Says Merrill Bonuses Pure Bull
By
Scott Reeves Mar 04, 2009 2:35 pm
Brief scrutiny of today's headlines.
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The Wall Street Journal, relying on unnamed “people familiar with the situation,” reports that an additional 149 employees received $3 million or more.
However, much of the compensation was made in stock, and the value of the shares has declined sharply since last year. Base pay for top executives at Merrill Lynch typically ranges from about $200,000 to $750,000.
New York Attorney General Andrew Cuomo seeks details about Merrill Lynch’s top earners as part of a probe into bonuses the Wall Street firm paid days before it was acquired by Bank of America (BAC).
Bank of America has declined to reveal the names of its highest paid executives, saying it would make it easier for the competition to lure top talent.
Cuomo seeks to determine if Merrill Lynch violated public disclosure laws when awarding the bonuses.
Bank of America argues that Merrill Lynch operated as an independent company for the 3 years in question, and determined compensation levels that matched the job market at that time. Bank of America says disclosure of the salary information Cuomo seeks would violate employees’ right to privacy.
The Journal says Bank of America is expected to file a legal argument in state court, arguing that salary information should not be made public. A decision is expected March 13.
The case will help determine if any distinction between public and private sectors now exists. Private companies were naïve -- or nuts -- if they believed federal bailout money came without strings, but Merrill awarded the big bucks when it was a successful private company.
Might a reasonable person ask: What’s it to you, Andy?
No positions in stocks mentioned.
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