Merrill CEO Thain won't let go his $10 million bonus'

John Thain, chief executive of Merrill Lynch & Co, won't let go his due and has demanded the battered securities firm that he be paid $10 million in 2008 bonus.

The firm's compensation committee has convened a full board meeting to make a formal decision on the issue of Thain's pay package.

While the compensation committee may favour doing away with the bonuses for the year at least, it is yet not know what Thain's formal bonus recommendations for himself and other senior executives of the company are.

Meanwhile, shareholders on Friday approved Bank of America Corp's takeover of Merrill, in a deal that would create a financial giant.

Thain said he deserved a bonus because he helped avert an extinction of the firm by agreeing to merge with BankAm on 15 September, an hour before Lehman Brothers Holdings Inc filed for bankruptcy.

Merrill is under a bail-out and there is a larger public opinion against huge compensation package to CEOs since the money comes from the taxpayer.

Also, other Wall Street firms, including Goldman Sachs Group Inc, which in fact fared better than Merrill, have decided against giving out bonuses to top executives.

Thain, who became Merrill's chief executive after the collapse of its business in October 2007, will run the merged company's global banking, securities and wealth management businesses. But he will not be joining Bank of America's board.