BofA had some details of Merrill bonuses: report

[Joanne98]

(Reuters) - Bank of America Corp (BAC.N) and Merrill Lynch agreed on a plan to pay up to $5.8 billion in bonuses to employees of the combined firm as BofA moved to take over the ailing investment bank, the Wall Street Journal said.

As the U.S. government prepares to unveil what could be a nearly $1 trillion economic stimulus package using taxpayers' money, speculation has swirled over what Bank of America knew about $4 billion in bonuses paid to Merrill Lynch employees before the takeover formally closed.

New York Attorney General Andrew Cuomo is reportedly looking into whether federal bailout loans to BofA were used appropriately, and if shareholders of both companies were given all the necessary information about Merrill's finances.

There have been rumblings BofA did not know Merrill had decided to pay bonuses in December, instead of in January, but some Merrill employees received part of their compensation in BofA stock on January 2, the Journal said, citing a private bonus agreement it said was struck when BofA agreed to buy Merrill last September.

The bonus agreement shows the two sides had agreed that the discretionary bonus pool at the combined company should not exceed $5.8 billion, and that 60 percent of it should be awarded in cash and 40 percent either in equity or long-term cash awards, the newspaper said.

http://www.reuters.com/article/ousiv/idUSTRE51212N20090203