He has been keeping a low profile since his ignominious exit from Merrill Lynch in early 2009. But who can forget John Thain, former Merrill Lynch CEO, of lavish-office-refurbishment fame.
Thain on Sunday was named chief executive of the CIT Group, the troubled financial company that emerged from bankruptcy in December under control of its primary creditors.
As the FT reports on Monday:
For Mr Thain, 54, the appointment is an opportunity to rehabilitate his career after a one-year stint as chief executive of Merrill Lynch resulted in a last-minute sale of the 94-year-old company to Bank of America, followed by his own dismissal a short time later.
“I’m excited about this,” Mr Thain told the FT. “This is an opportunity to be part of a company that is key to the US economic recovery and the creation of jobs.”
Thain’s appointment comes after a one-year stint as chief executive of Merrill Lynch ended in its sale to Bank of America, followed by his own dismissal early last year and revelations that he spent $1.2m to refurbish his office in 2008.
At CIT, he will earn a salary of $500,000 and receive 180,000 shares of restricted stock, worth $5.5m at current prices, that vest over several years – $3m of which is locked up for the next three years.
In other words, if he wanted to spend $1.2m doing up his office now, he would have to save his entire salary for two years to do so.
However he will also be eligible for a $1.5m “discretionary” payment in restricted shares, contingent on his performance, that will vest after two years and can’t be sold for three years, reports Bloomberg, adding that CIT can claw back the $1.5m payment under certain conditions.
Still, it’s all a huge come-down from his short reign at Merrill Lynch, when the group agreed to pay Thain $44m in bonus, salary and stock.
But times have changed, and Thain’s tastes – including for sumptuous interior decorating – have also changed. As he told Bloomberg:
At CIT, “I think I’ll keep my office exactly the way it is”.
Related links:
Merrill’s ex-chief is back, atop CIT – WSJ
Nothing is as dangerous as a Thain scorned – FTAlphaville
Bonus neurosis, revisited: Mine’s bigger than yours – FTAlphaville