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Golden parachute lands Merrill exec in $37-million pad

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Let’s all be thankful that someone can still afford to buy a home in this credit crunch.

From today’s New York Post:

Look what taxpayers’ Wall Street rescue helped buy one former honcho! Peter Kraus -- a former top executive at Merrill Lynch who received a $25-million golden parachute after only three months’ work -- has landed himself a $37-million Park Avenue pad. Kraus, 55, doled out the staggering sum for the five-bedroom co-op at 720 Park Ave. near East 70th Street after taking $25 million from Merrill after the company was sold to Bank of America in September.

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Chalk it up to brilliant negotiation skills, and being in the right place at the right time: The Post says that Merrill hired Kraus as an executive vice president in summer, and agreed to a $50-million total pay package for him -- including the customary giant golden parachute.

‘Although he did not officially start work until September, Kraus hit the jackpot after just a couple of days, when Merrill CEO John Thain sold the company to Bank of America,’ the Post notes. ‘The sale automatically triggered the $25 million payout under Kraus’ contract. He left Merrill this month.’

His parachute is equivalent to 0.1% of the $25 billion cash infusion that Bank of America and Merrill together got under the government’s bailout plan for the financial system.

Kraus now is CEO of money manager AllianceBernstein.

-- Tom Petruno

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