Thanks to reader Rikyrah for the heads up yesterday about this news. Stan O'Neal, the chairman and CEO of Merrill Lynch & Co., is under enormous pressure to step down after his company posted a third-quarter loss of $2.3 billion and an $8.4 billion charge in its mortgage-backed securities business. Some members of the board, which has been discussing Mr. O’Neal’s future since Friday, were also angered by his decision to approach Wachovia, a rival, about a potential merger without approval from directors.
Regular readers of Booker Rising may recall past posts about Mr. O'Neal's boosterism for President George W. Bush's re-election campaign (where he raised more than $200,000). The move to oust Mr O’Neal is being led by Armando Codina, a Cuban-American businessman close to the family of President George W. Bush, who has been on Merrill’s board for two years.
Merrill shares, hit this week after its losses on mortgage-backed securities were announced, closed up 8.5 per cent on Friday on talk that Mr O’Neal might be ousted and a deal was possible. The losses were almost double the figure Merrill announced less than three weeks ago but Mr. O’Neal appeared to have the backing of directors at a meeting last week, according to insiders.
The New York Post writes: "A chorus of investors and banking analysts was quick to call for O'Neal's ouster, casting him as the new public face of Wall Street's woes. O'Neal, 54, had been regarded as Merrill's savior at the start of the year - with a $91.37 million pay package, including bonuses and stock awards. He'd impressed shareholders by tripling the company's stock in just four years and had shaved costs by firing 12,000 people. But the bottom fell out when the stock tumbled this summer from a high of $98.68 to a low of $59.14 on Thursday. News of his possible ouster sent shares soaring by 9 percent Friday. Shareholders' stakes were enriched by $4.5 billion, and O'Neal gained a $16.7 million paper profit - on prospects of his own firing."
My response: Ol' Stan will be alright. He will be HNIC somewhere else, as another company will eventually pick him up.
Merrill Chief Set To Be Replaced
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3 comments:
Yeah- Ol' Stan will be alight, with or without being picked up by another company. He will walk away with over 100 million in severance in addition to the 140 million he's already banked in FIVE years.
RE: the Golden Parachute pay package for Merrill's CEO Stan O'Neil.
Why should anyone get $160 million dollars when they are fired? A $7.9 Billion writedown and people losing houses.
In today's WSJ Oct 30,2007 is the story of another Black man. He was as a Sophmore in high school convicted of rape and sent to prison. He is in his 40's having spent most of his life in a brutal prison as a rapist. He was cleared by DNA testing. What was his exit package? $150,000 total. $6,500 for every year in prison.
How about Stan O'Neil step up to the plate and donate his $160 million for the convicts now cleared of crimes.
How many jets and yachts does he need? Does anyone need the 10,000 to 20,000 square foot houses this pay buys?
Does anyone need over a few million dollars total? What a sick nation. No wonder this nation is so despised around the world.
Our president is spending multi Billions on two wars which we started. Using our money to murder innocent people. Now President Bush refuses to sign a bill passed by Congress to fund medical care for children.
My previous suggestion was to give CEO and other executives convicted of crimes a choice. I am not speaking of Mr. O'Neil but convicted white collar criminals who defrauded millions of dollars. Make a federal law that these super multi millionaires can choose to donate their salary and option profits from the previous years for an equivalent reduction in time served.
Use this money to fund children's health care. Also have the government either state or federal donate the saved cost associated with the prison terms to children's health care.
If some of the absurd wealth of CEO income is distributed to the poor then maybe people around the world would see this nation as is should be, a Jewish, Christian or Islamic giver not a Satan.
Warren Buffet in today's WSJ gave his best advice.
"I have more money than You but what sets me apart is that i get up in the morning and do the work that i enjoy."
Notice he donated most of his money. He did not even want to take the time off from his loved profession to give it away. He gave his money to Mr. and Mrs. Gates who he knows will use it wisely.
If someone wants to run a company then let them do it for fun. Yes compensate them decently then give them the huge amounts only if they fund worthwhile charities in their names and the company's name. Let their names go down in history as givers and great men not Robber Barrons. (no pun on the excellent magazine.)
Most of you will answer that economics determine the best CEO. Pay more and get more. I was an Econ major at the University of Washington. The best man will be someone who loves his work and will do the best job to reward stockholders, employees and customers.
No i am not a Socialist, Christian or Muslim. I read the Bible and the Quran, The Economist, Business Week, Investor's Business Daily and the Wall Street Journal. I day trade stocks full time at home on three computers. I love it.
I have always chosen jobs or a business that gives me joy. I had been a river raft guide at 32 and a commercial salmon fisherman. $40 a day and $150 for the entire season.
Tom Robbins had the best advice on religion in Fierce Invalids Home from Hot Climates. My favorite novel of all time.
"I practice all religions and believe in none."
As soon as someone believes then the battles begin and the purpose of the religion is destroyed.
Most people in the United States call themselves Christians. Would Jesus, not his so called church, have accepted $500 million in preaching fees?
Mecca before Islam was a religious site visited by many. One of the original tourist towns. Islam was started when Mohammed saw his tribe in Mecca become capitalistic and move away from the tribal public support of the poor including widows and children. He meant his religion to unite the world, including Christians and Jews, in honoring one God whatever His or Her name. The basis was to care for others in this life.
Now his religion also has been stolen to oppress and murder. The only comparison of religion is how many have been tortured and murdered in the name of their Brand of God.
I expect Jesus, Mohammed and all the other religious men and women are having a good time together but shaking their heads at how poorly their intentions were carried out in their names.
Robert J. Lanier
Dedicated to my beloved daughter, Marin Lanier, who i hope will use her kindness and do only good deeds in her life.
For search use, she did not write this.
Marin Caribia Lanier
Robert Jochem Lanier
Because this site is a Black awareness site let me make an additional comment to my Supra statement.
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Above i said that i was not a Christian or a Muslim. I modify that in accordance with Mahatma Gandhi.
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When India was finally given independence from Great Britain in 1947 a violent clash broke out between Hindu and Muslim groups. India was divided into a Hindu India and a Muslim Pakistan. Each group made massive movements from their homes to the "proper" country according to their religion.
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Gandhi was Hindu. He sought to keep India as one and to prevent Civil War. He proclaimed, "I am a Muslim, i am a Hindu, i am a Buddhist, i am a Christian, i am a Jew."
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Gandhi was assassinated in 1948 over this religious hatred.
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Now to the Black connection. Martin Luther King was a follower of the concepts of Mahatma Gandhi. Passive resistance and nonviolent disobedience. Martin Luther King made the greatest strides in equality for Blacks. He also was assassinated.
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Now look at the constant wars in the Middle East including the strife in Pakistan. Muslims fight each other over a simple concept of how the tribal leadership was to be passed. Catholics and Protestants have killed each other over the Pope or small differences in beliefs.
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Again i refer to Tom Robbins and his attitude to religion, "I practice all religions and believe in none." As soon as you start believing the killing starts.
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Robert J. Lanier
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