Merrill execs get stock, not cash, for ’07

The stock options will "promote the continuity of the management team," Merrill Lynch said in an SEC filing.

Merrill Lynch & Co. will offer stock-option grants to some high ranking officials instead of bonuses for 2007.
The stock options will “promote the continuity of the management team as they continue to navigate through challenging market conditions in 2008,” said the New York-based firm in a Securities and Exchange Commission filing.
The stock options grants will include 1.2 million shares for president and chief operating officer Gregory Fleming; 971,346 shares for Robert McCann, vice president and president of global wealth management; and 593,600 for Rosemary Berkery, vice chairman and general counsel.
The grants will not be exercisable or subject to retirement treatment before Jan. 28, 2010, with one third of the stock options granted exercisable on or after that date and the remaining two-thirds exercisable two years from now only if “specified stock price targets are achieved,” according to the filing.
Merrill Lynch’s 2007 struggles included a fourth-quarter loss of $9.82 billion leading to a $16.7 write-down related to the ongoing fallout from the subprime meltdown (InvestmentNews, Jan. 30).
Merrill Lynch officials did not respond to calls for comment.