How to Make $10-$25 Million For One Month's Work

First, befriend John Thain.  Then, have Mr. Thain hire you as the "head of strategy" at Merrill.  Make sure you negotiate a compensation package that rewards you at least $10-$25 million within the next month, regardless of how many additional billions Merrill posts in losses OR how many billions Merrill must seek from the Fed in liquidity OR how many billions in bank debt guarantees it must secure from the Treasury OR how many billions it must get in direct cash infusions from the US government TO AVERT BANKRUPTCY.  If all of this sounds absurd to you, rest assured that it is not a figment of my overactive imagination.  Please click on the link and read the actual Wall Street Journal story about Peter Kraus, who was hired in September to be Merrill's head of strategy and will now be leaving the firm with as much at $25 million in compensation for his brilliant strategic work for the firm.  

Since I tend to harp on executive compensation frequently, I would like to clarify my views on the topic for anyone who may think I'm the average communist.  I am a big believer in personal wealth generated through entrepreneurship, hard work, or brilliant leadership that leads to a profitable company that also rewards shareholders and employees.  I am opposed to executives getting paid absurd amounts of money for working at a company for a short period of time with little result.  This seems to happen far too frequently and I am amazed that shareholders still accept the fact that their boards are offering these types of deals to executives.  However, if shareholders are willing to accept it, than so be it.  I simply choose not to buy stock in companies that throw too much money at executives who don't perform.

However, if you are a taxpayer, Mr. Kraus' compensation should make you very angry.  I don't care how brilliant the man is.  I don't care if he wouldn't have worked for less than $10 million.  I think it is outrageous that anyone should be promised that kind of money when a company is taking large handouts from the government and firing employees left and right.  Merrill is still in business because the US government has taken extraordinary and unprecedented steps by guaranteeing all bank debt, offering Merrill a $10 billion cash infusion, and handing its acquirer Bank of America a $25 billion cash injection.  Without these government actions, Mr. Kraus' strategizing would have amounted to nothing.  Merrill would've faced bankruptcy.  As long as the US government is an investor in the banking system, these types of egregious pay-without-performance guarantees have GOT TO STOP.  Or my head will explode.  Kudos to the Wall Street Journal for publishing this story as I am certain that at least Andrew Cuomo will read it and possibly take action.  One can only hope.