No losses for biggest bosses
Mon Nov 4, 7:19 AM ET
By DOUGLAS FEIDEN
DAILY NEWS STAFF WRITER
Merrill Lynch axed 17,400 employees and kept a stable of analysts who allegedly misled investors. The reward for CEO David Komansky: A $42 million payday - not to mention the $110 million-plus in options he has yet to cash out.
Merrill Lynch, the nation's largest brokerage house, fired 25% of its workforce - 17,400 people - and saw its profits sink 85% in 2001.
Accused by state Attorney General Eliot Spitzer of tainting research to win underwriting business, it allegedly duped investors by publicly touting stocks in firms its analysts privately disparaged. It paid a $100 million civil fine to settle charges without admitting wrongdoing.
Separately, a Senate subcommittee accused the firm of helping mask Enron's shaky finances, a relationship that's under federal investigation.
It all happened on CEO Komansky's watch, yet he bagged a $42 million pay package. It breaks down like this: Base salary, $700,000; cash bonus, $1 million; restricted stock granted, $4.1 million; "special restricted stock" granted, $6.4 million; stock options granted, $4.1 million, options exercised, $25.7 million.
Komansky has another $112 million in unexercised stock options from prior years. That amount alone will cost stockholders 12% more than Merrill's payment to Spitzer. |
