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Merrill to Slash Bonuses 50%

Still facing the fallout from the sub-prime meltdown, the firm slashes pay for 60,900 employees

By Jim O'Neill, Newser User

Posted Dec 3, 2008 7:35 AM CST

(Newser) – Merrill Lynch, facing losses of $13.3 billion this year and with revenues off 96% from a year ago, will slash year-end bonuses at least 50%, Bloomberg reports. Some employees may face steeper cuts. Merrill and Bank of America, which agreed to acquire the failing investment bank earlier this year, received $25 billion from the federal rescue fund.

Without any bonuses, Merrill is on track to pay its 60,900 employees an average of $184,00 this year, compared to $248,000 last year. The company’s revenue through September was $834 million, down from $19.4 billion last year.

People walk past the Merrill Lynch building in New York. (AP Photo/Brian McDermott, file)

Merrill Lynch office Monday, Sept. 15, 2008, in Cottonwood, Utah. (AP Photo/Douglas C. Pizac)

Merrill Lynch headquarters is shown Monday, Sept. 15, 2008 in New York. (AP Photo/Mark Lennihan)

Merrill Lynch Chairman and CEO John Thain speaks during a news conference in New York, Monday, Sept. 15, 2008. (AP Photos/Bebeto Matthews)

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Merrill to Slash Bonuses 50%

Still facing the fallout from the sub-prime meltdown, the firm slashes pay for 60,900 employees

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More Newser Stories

BofA Knew of Merrill's $4B Bonuses

Private bonus agreement backs up Thain's claim that Bank of America was aware of payouts

Thain Accuses BofA of Lying About Bonuses

Fired Merill CEO tries to 'set the record straight' about $3.6B payout

Ousted Thain to Repay $1.2M Spent on Office

Lush renovation was a 'mistake,' says ex-Merrill CEO

Bailed-Out Bank Execs Made $1.6B Last Year

Execs made average of $2.6 million; Merrill Lynch CEO made $83 million

Merrill CEO Backs Off $10M Bonus Request

Wall Street climate pressures Thain to forgo year-end check

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Merrill to Slash Bonuses 50%

Still facing the fallout from the sub-prime meltdown, the firm slashes pay for 60,900 employees

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OTHER STORIES ON OUR RADAR

executive compensation • Merrill Lynch • John Thain • bailout • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

BofA Knew of Merrill's $4B Bonuses

Private bonus agreement backs up Thain's claim that Bank of America was aware of payouts

Thain Accuses BofA of Lying About Bonuses

Fired Merill CEO tries to 'set the record straight' about $3.6B payout

Ousted Thain to Repay $1.2M Spent on Office

Lush renovation was a 'mistake,' says ex-Merrill CEO

Bailed-Out Bank Execs Made $1.6B Last Year

Execs made average of $2.6 million; Merrill Lynch CEO made $83 million

Merrill CEO Backs Off $10M Bonus Request

Wall Street climate pressures Thain to forgo year-end check

About Us

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Newser By Users

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More News

What is Newser?