Merrill Executives Received No Bonuses for 2007

NEW YORK (Reuters) - Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research, Stock Buzz) said on Wednesday top executives did not receive bonuses for 2007 after the world's largest brokerage posted $12.1 billion in net losses during the second half of the year.

Merrill's compensation committee made the decision on Monday, according to a U.S. Securities and Exchange Commission filing. The committee also determined, however, that three senior executives will receive large awards of stock options to keep them at the company.

Merrill President Greg Fleming will receive 1.19 million retention stock options. Robert McCann, president of global wealth management, and General Counsel Rosemary Berkery, will receive 971,346 and 593,600 retention stock options, respectively, Merrill said in the filing.

The committee made the grant "to promote the continuity of the management team as they continue to navigate through challenging market conditions in 2008," the filing said.

One-third of the options for the three senior executives can be exercised after two years. After that, another third can be exercised if Merrill's stock price averages $80 over a 15-day trading period and the balance will be exercisable if the stock price averages $100, Merrill said.

The exercise price on the stock options is $55.93, reflecting Merrill's stock price on Monday. The stock closed on Wednesday at $56.24.

Bad bets on subprime mortgage-related securities hammered Merrill's stock price in 2007 and prompted the ouster of Chief Executive Stan O'Neal. New leader John Thain has said company performance will be the centerpiece in determining the size of future executive bonuses.

During the second half of 2007, Merrill's write-downs and credit losses were about $24 billion, mostly because of declines in the value of subprime mortgage-related securities.

(Reporting by Tim McLaughlin; Editing by Andre Grenon)