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Ousted Thain to Repay $1.2M Spent on Office

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

By Matt Cantor,  Newser Staff

Posted Jan 26, 2009 11:37 AM CST
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(Newser) – Former Merrill Lynch CEO John Thain says he’ll repay the $1.2 million he spent on office renovations last year, Bloomberg reports. “The expenses were incurred over a year ago in a very different environment,” Thain wrote in a memo to Merrill execs. “They were a mistake in the light of the world we live in today. I will therefore reimburse the company.”

Thain also defended himself from criticism over an unexpected $15.3 billion fourth-quarter loss and paying year-end bonuses to executives before closing a deal to sell Merrill to Bank of America. The losses were “almost entirely on legacy positions and were due to market movements,” he said. Further, Bank of America “learned about these losses when we did” and helped determine the bonuses.

In this Sept. 15, 2008, file photo, former Merrill Lynch executive John Thain, left, and Bank of America Chairman and CEO Ken Lewis shake hands following a news conference in New York.
In this Sept. 15, 2008, file photo, former Merrill Lynch executive John Thain, left, and Bank of America Chairman and CEO Ken Lewis shake hands following a news conference in New York.   (AP Photos)
In this 2008 file photo, former Merrill Lynch chief executive John Thain speaks during a news conference in New York.
In this 2008 file photo, former Merrill Lynch chief executive John Thain speaks during a news conference in New York.   (AP Photos)
Thain resigned from Bank of America on Thursday amid an uproar over year-end bonuses and a $1.2 million office renovation.
Thain resigned from Bank of America on Thursday amid an uproar over year-end bonuses and a $1.2 million office renovation.   (AP Photos)
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COMMENTS
Showing 3 of 3 comments
Guest
Jan 27, 2009 2:14 AM CST
Why would any company want to retain THESE executives? All those executives ought to be ashamed. All those business schools ought to revamp their curriculums.
Guest
Jan 26, 2009 5:42 AM CST
It would be honorable if he have back his bonuses for the last few years. This is merely throwing back a few baubles for the rubes.
Guest
Jan 25, 2009 11:45 PM CST
good.

Thain's memo
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executive compensation • Bank of America • merger • Merrill Lynch • resignation • office • John Thain • renovation • financial crisis • reimbursement

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