Executive Compensation and John Thain (Part 2)

We wrote earlier today about John Thain's remodeling of his office.  Our post raised fewer questions about his behavior and more about the board's.  We note that he has issued a memorandum where he has agreed to repay the expenses associated with the remodeling.  Here is the full version of what the memo said on the subject:

• The final topic is the expenses related to my office. The $1.2 million reported in the press was for the renovation of my office, two conference rooms and a reception area.

• The expenses were incurred over a year ago in a very different environment.

• Nonetheless, they were a mistake in the light of the world we live in today. I will therefore reimburse the company for all of the costs incurred.

It was a highly professional act that demonstrates his elevated sense of ethics and responsibility.  As for the board, only silence.