Merrill's Shareholders Are Holding The Bag
"Commerical banks have dominated capital allocation and liquidity but more and more in country after country, the capital markets are playing that intermediary role. This is good news for Merrill Lynch because this is exactly what we do.........We have to continue to ensure proper controls, good risk management and adequate liqudity. And we are doing that"
CEO O'Neal of Merrill Lynch before their $8 billion quarterly loss
"The bottom line is we got it wrong by being overexposed to subprime.......no one is more disappointed than I am. We remain confident in our business capabilities and risk management practices."
CEO O'Neal of Merrill Lynch after their $8 billion quarterly loss
The CEO of Merrill Lynch retired today. As the New York Times reported on Saturday, he will take at least $159 million with his retirement. That's on top of the $160 million he received over the last five years for running Merrill into the dirt. Yet, it appears this morning Merrill is sensitive to this fact by saying O'Neal will not be getting anything more than any other employee would get. If there are any Merrill shareholders that read this blog, I would encourage you to identify the major shareholders of Merrill, probably CALPERS amongst other institutions, and write to encourage them to seek removal of Merrill's board of directors as well. I plan to find out the top shareholder and contact them this weekend. It is time that shareholders get serious about boards being more than country club parties beholden to CEOs. People make mistakes. O'Neal made a mistake. That's fine. Paying an individual $300 odd million to run a PUBLIC company into the ground in five years is pathetic. Allowing a supposedly independent board of directors who silently watched as this took place is inexcusable. Losing $8 billion and counting was avoidable. If I was capable of not making such a mistake on subprime and the other messes we'll likely hear about in the future, I am quite confident there is a qualified executive capable of running Merrill who would not have made this mistake. Now, I believe in fair pay for CEOs with clearly defined performance-based compensation but these pay packages are a result of improper and lax board involvement and it is an epidemic. Involvement that is likely for personal gain. Therefore, the board failed its fiduciary responsibility to the shareholders to the tune of $9 billion and counting. The board is apparently unqualified to move Merrill forward and should find a new country club. This activist approach is the only way we as shareholders will get the governance we deserve.
UPDATE: I thought that I should disclose that I do not own shares in Merrill. After being so dour on the finance industry and the mess they have created, I would not touch Merrill. But, I am an advocate of shareholder rights and governance reform. That is the reason I plan to write CalPERS or whomever I identify.
CEO O'Neal of Merrill Lynch before their $8 billion quarterly loss
"The bottom line is we got it wrong by being overexposed to subprime.......no one is more disappointed than I am. We remain confident in our business capabilities and risk management practices."
CEO O'Neal of Merrill Lynch after their $8 billion quarterly loss
The CEO of Merrill Lynch retired today. As the New York Times reported on Saturday, he will take at least $159 million with his retirement. That's on top of the $160 million he received over the last five years for running Merrill into the dirt. Yet, it appears this morning Merrill is sensitive to this fact by saying O'Neal will not be getting anything more than any other employee would get. If there are any Merrill shareholders that read this blog, I would encourage you to identify the major shareholders of Merrill, probably CALPERS amongst other institutions, and write to encourage them to seek removal of Merrill's board of directors as well. I plan to find out the top shareholder and contact them this weekend. It is time that shareholders get serious about boards being more than country club parties beholden to CEOs. People make mistakes. O'Neal made a mistake. That's fine. Paying an individual $300 odd million to run a PUBLIC company into the ground in five years is pathetic. Allowing a supposedly independent board of directors who silently watched as this took place is inexcusable. Losing $8 billion and counting was avoidable. If I was capable of not making such a mistake on subprime and the other messes we'll likely hear about in the future, I am quite confident there is a qualified executive capable of running Merrill who would not have made this mistake. Now, I believe in fair pay for CEOs with clearly defined performance-based compensation but these pay packages are a result of improper and lax board involvement and it is an epidemic. Involvement that is likely for personal gain. Therefore, the board failed its fiduciary responsibility to the shareholders to the tune of $9 billion and counting. The board is apparently unqualified to move Merrill forward and should find a new country club. This activist approach is the only way we as shareholders will get the governance we deserve.
UPDATE: I thought that I should disclose that I do not own shares in Merrill. After being so dour on the finance industry and the mess they have created, I would not touch Merrill. But, I am an advocate of shareholder rights and governance reform. That is the reason I plan to write CalPERS or whomever I identify.
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