JPMorgan Chase & Co (JPM.N: Quote, Profile, Research), which is buying the troubled investment bank Bear Stearns Cos (BSC.N: Quote, Profile, Research), said on Thursday it has reached oral agreements with former Bear Chief Executive Alan "Ace" Greenberg and current co-head of fixed-income Jeffrey Mayer to join the third-largest U.S. bank.
In a U.S. Securities and Exchange Commission filing, JPMorgan said other senior Bear officials may also eventually accept employment with the bank, including Chief Executive Alan Schwartz, Chief Financial Officer Sam Molinaro, Controller Jeffrey Farber and General Counsel Michael Solender.
Bear agreed last month to sell itself to JPMorgan for $10 per share after clients and lenders fled in the equivalent of a run on the bank, putting Bear on the brink of bankruptcy.
As part of the merger, the U.S. Federal Reserve agreed to guarantee $29 billion of Bear's assets.
JPMorgan has not said how many of Bear's roughly 14,000 employees it plans to retain. It expects to complete the merger by the end of June. The bank did not immediately return a request for comment.
According to the filing, Mayer would become a vice chairman of JPMorgan's investment banking unit, and could receive awards totaling more than $27 million.
Mayer would receive a $250,000 salary and $12 million bonus for 2008, and could be eligible for $15 million of restricted stock that would vest over three years, the filing shows.
Greenberg would become a vice chairman in retail operations, and be entitled to 40 percent of commission revenue he generates, according to the filing.
Greenberg told Reuters on April 17 that he expected to join JPMorgan. He was Bear's chief executive from 1978 to 1993.
Farber and Solender would receive a respective $2.25 million and $2.75 million of restricted stock, plus bonuses, if they join JPMorgan, the filing shows.
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