NEW YORK (Reuters) - Merrill Lynch & Co Inc MER.N 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 board 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 as retention grants.
Merrill President Greg Fleming will receive 1.19 million retention 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.
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