Bank of America (BAC) has reversed course on a controversial decision to delay paying bonuses to its i-bank employees for several years until the financial crisis is over. This obviously went down horribly internally as a) people don’t like not getting paid and b) many Merrill Lynch employees made out like bandits right before the deal closed.
Dow Jones: The Charlotte-based bank is telling some employees in various businesses across the bank that a portion of their bonuses will be paid out over six quarters. That change significantly shortens a previous plan that would have deferred bonus payments to some employees over a period of time that stretched through 2012.
Employees earning bonuses of more than $50,000 were originally told their bonus pay would be spread out over four years becauseof the bank’s financial problems during the credit crisis.
We can only imagine that the reaction to the initial plan was completely untennable internally, and it perhaps suggests that the bank feels confident it will soon be the recipient of yet more capital support from the government.