$$$$$$ wrote:
...go ahead and criticize my post. I dare you.
No need to "criticize" your post, it's flat out incorrect.
Merrill's former CEO Stan O'Neil didn't receive any "parachute" at all, if by "parachute" you mean severence pay. The article says:
"O'Neal left with a $131.4 million equity package of stock, options, restricted shares and restricted units. His restricted stock and restricted stock units will continue to vest on their original schedules, the company said.
He also has retirement benefits worth $24.7 million, while his deferred compensation stands at $5.4 million, according to the company. He will be entitled to an office and an executive assistant for up to three years."
From what I understand, this $161 million is money he had "earned" in previous years. Pull in $30-$50 million total compensation a few years in a row, and it starts to add up. An employer can not take back stock options and salary it has awarded in previous years (unless someone did something illegal perhaps).
In our free market economy people shouldn't own Merrill Lynch shares if they strongly disagree with it's pay policies. Invest in Costco instead (it's CEO earns about $350,000/year).
For the record: I also think corporate boards often overpay, but it can be especially difficult for financial firms now. Not only is the supply of potential CEOs very limited, but these companies have to compete with private equity firms/hedge funds whose partners/top performers can earn much more in total comp.