Disturbing Decisions, Yet Robust Rewards for CEO

When he was chief executive of Merrill Lynch, John Thain paid out $3.6 billion in bonuses to Merrill employees just before the investment bank was sold to Bank of America. Thain also spent more than $1 million to redecorate his office at Merrill — a redecoration that took place even as the company was sliding deeper into a financial hole.

So who would want to hire a CEO who had made highly disturbing decisions like these? CIT Group, that’s who. This week, Thain took the helm at CIT Group, and his new gig will pay him handsomely.

According to the Washington Post, CIT Group will pay Thain an annual salary and stock package worth $6 million. And that does not include the bonuses for which he will be eligible.

Thain’s new job is an example of the stories and events that explain why the American people view corporate officials as being so out of touch with reality.