At a time when major brokerage houses such as Merrill Lynch, Lehman Brothers, Bear Stearns lost nearly 50% in their share value, year end bonuses are up as much as 20% over last year.

2007 is one of Wall Street’s worst years, and your point? Stock Brokerage Bonus Checks rose on average 14 percent.

The largest U.S. brokerages — Morgan Stanley, Lehman Brothers, Goldman Sachs and Bear Stearns gave approximately $49.6 billion in total compensation, with bonuses estimated to be 60 percent, roughly $30 billion.

It doesn’t matter that their investors lost a combined $72 billion. It doesn’t matter that
their investors who held those brokerage shares of stock saw them plunge 45 percent. This week, their top executives announced that they don’t see bottom yet. Merrill Lynch is planning another round of write offs in January.

A handful of their senior executives agreed not to take bonuses this year. Bonuses, how about throwing them out on their ears for such poor performance.

Morgan Stanley has lost about 45% value in 1 year. It’s CEO John Mack won’t receive a cash bonus this year. But wait… He will receive stock and options worth almost $40.2 million. This is a bit higher than his $800,000 salary.

In March, Lehman Brothers was trading at $90 a share. Today it is down to $60. It’s CEO Richard Fuld received a $35 million stock bonus for 2007, up 4 percent from last year.

Makes you wonder…whose is charge anyway? All I can say is, I am sure glad I don’t invest in mutual funds offered by these companies. If I am going to lose 45% value of my portfolio, at least I want the entertainment value of losing it…
Barbara