The chief executives of Merrill Lynch and Morgan Stanley, along with top company officials, will not receive pay bonuses for 2008, according to several reports.
Merrill CEO John Thain, who had recently asked for a 2008 bonus of as much as $10 million, told a compensation committee late Monday that he would not request a bonus, according to the Wall Street Journal.
Thain’s counterpart at Morgan Stanley, John Mack, will also forgo an annual bonus for the second consecutive year.
Morgan Stanley’s two co-presidents will also pass up their bonuses. Additionally, the firm will cut compensation for its 35 top executives by 65 percent, the Journal reported. The top 14 executives will take a 75 percent cut.
The announcements come amid increased public anger over CEO culpability in the widespread credit crisis.
Last week Bank of America shareholders approved the acquisition of Thain’s Merrill Lynch. Thain, who spearheaded the acquisition by reaching out to bank of America CEO Ken Lewis, will not be a member of the Bank of America boards after the transaction closes, according to Forbes.