The amount in bonuses paid out was between $3 and $4 billion, according to the Financial Times. Exorbitant Wall St. bonuses have garnered increased attention since the economic collapse and subsequent billions in bailout funds have gone to help companies stay afloat.
Bank of America, which received $25 billion in bailout funds before being handed an addition $20 billion last week, said Thursday that it knew Thain gave the incentives ahead of time.
"Merrill was an independent company until Jan. 1 of 2009," said spokesman Scott Silvestri. "John Thain decided to pay year-end incentives in December, as opposed to their normal date in January. Bank of America was informed of his decision."
Report Says Thain Spent Over $1 Million To Redecorate Office
To make matters worse, Thain is now facing more criticism for reportedly spending $1.2 million to lavishly decorate his Merrill Lynch office early last year while the firm was fighting to survive.
Thain splurged on interior designs from the Obama's chosen White House decorator Michael Smith ($800,000), two area rugs ($131,000), two guest chairs ($87,000), a 19th Century credenza ($68,000), four pairs of curtains ($28,000), and a mahogany pedestal table ($25,000), according to Charlie Gasparino, the CNBC contributor and Daily Beast columnist who broke the story.
Other items mentioned: six dining room chairs ($37,000), a George IV Desk ($18,000), a custom coffee table ($16,000), a sofa ($15,000), a chandelier ($13,000), a mirror ($5,000), six wall sconces ($2,700).
Also reported to be on the list was a trash can for $1,400.
Thain's Decorator Chosen by Obamas for the White House
Thain apparently didn't get much of a deal – the First Family is paying Smith just $100,000 to decorate their new presidential home, according to the report.
Merrill Lynch and Smith did not immediately respond calls from ABCNews.com seeking comment. Thain could not be reached.
Thain, a Harvard MBA, was named Chairman and CEO of Merrill in November 2007. The following January, the firm announced record-breaking losses of over $8 billion. By April the troubled investment bank had said it would lay off as much as 10 percent of its workforce.
The Associated Press contributed to this report.
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