The New York Times has reported the board of Merrill Lynch is almost ready to dismiss its chairman and chief executive, Stanley O'Neal, after Merrill last week announced a $US7.9 billion ($A8.6 billion) write-down stemming from the bank's aggressive move into subprime mortgages.
Mr O'Neal is entitled to $US30 million in retirement benefits as well as $US129 million in stock and option holdings ($A173 million in total), according to an analysis by James Reda & Associates using Friday's share price of $US66.09. That would be on top of the roughly $US160 million he took home in almost five years on the job.
Under Mr O'Neal, Merrill moved aggressively into lucrative businesses such as the packaging of subprime mortgages and other complex debt securities. That led to a string of blow-out quarters — and blow-out paydays. Last year, Mr O'Neal's $US46.4 million pay package made him Wall Street's second-highest paid chief executive, behind Lloyd Blankfein of Goldman Sachs, who was paid $US54.3 million, according to Equilar research.