Merrill Lynch’s Stanley O’Neal and David Komansky were “limited” to $1 million cash bonuses in 2001, but the top two company executives received additional company stock to make up the difference, according to brokers at the firm.
Merrill’s earnings slid 37 percent in 2001, and the firm axed 15,000 jobs, “yet [O’Neal and Komansky] still got a nice bonus, which wasn’t warranted when you consider what they already make and how tough a year it was for all of us,” says an East Coast-based rep from the firm.
According to reps, an internal memo from O’Neal and Komansky said the lower cash payouts were replaced with “restricted stock that vests in three years.”
The memo also said that executive compensation for 2001 “decreased in line with the company's financial results."
