A Rather Messy Bonus Story
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And it all started with CNBC's Charlie Gasparino reporting rumours that a chap over in Merrill Lynch's fixed income department, possibly a fixed income research analyst, had 'inappropriately relieved' himself in the office in protest at being given a p.ss-poor bonus.
Dealbreaker then picked up and ran with the story, establishing that it wasn't urine, but the other stuff. Apparently the guy took a dump in the restroom, 'stomped in it, and then dragged it all over the place by walking around with it on his shoes'. Merrill is said to have said that the whole thing was 'an unfortunate accident'.
Later reports suggest, however, that this was no 'accident'. The incident is said to have taken place on the 19th floor of Merrill's New York headquarters building in the World Financial Center, which we believe houses many of the firm's fixed income group. And the smart money now says that the villain of the piece was actually an equities guy who came over to fixed income to express his view of their 2007 credit market losses - losses which he clearly thought had adversely affected his own bonus payout.
Staying with Merrill Lynch comp, The New York Times 'DealBook' section reports that the firm's financial statements show that it had entered 2007 with $1.9bn in unrecognised expenses related to stock-based pay that had yet to invest for employees. As Merrill brought forward the vesting date of some stock awards, the firm is likely to take a charge of several million dollars in the fourth quarter in recognition of the expenses, making what will already by a huge subprime lending-related loss even bigger.
Finally, The Financial Times reports that UBS, which recently capped the cash element paid out in banker bonuses, will allow staff to cash in the equity allocation after 12 months, rather than making them wait the usual 3 year vesting period.
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