Bank of America’s Bonus Pool Increases

By Saeed Azhar
NEW YORK (Reuters) – Bank of America’s bonus pool for investment bankers is expected to rise by 10% for the previous year, according to a source familiar with the situation.

While the average increase is projected at 10%, some investment bankers may receive smaller payouts in the mid-to-high single digits, whereas top performers could exceed a 10% increase, as indicated by two additional sources.

The bonuses are set to be paid out in February following the bank’s announcement of its fourth-quarter earnings on January 16th.

Global banks enjoyed a boost in dealmaking last year, driven by mergers, acquisitions, and a surge in underwriting for bonds and equities.

Bloomberg has previously reported on the increases at Bank of America.

BofA Securities ranked third globally for investment banking fees in the fourth quarter, earning $1.4 billion in revenue, a marked increase from $958 million during the same period in 2023, according to Dealogic data.

Compensation consultancy Johnson Associates noted in November that Wall Street firms are anticipated to issue higher bonuses for 2024, marking the first increase since a prosperous year in 2021.

Bonus payouts are likely to rise as financiers have benefitted from various recent factors: a rebound in transactions, the Federal Reserve’s interest rate cuts, and equity markets reaching record highs, according to the consultancy’s founder, Alan Johnson.