This after the bank announced that compensation for I-bankers would drop by 25%.
Bloomberg reports that the bank will limit cash bonuses for bankers and traders. Cash bonuses will be capped at $150,000 (which applies to those getting as much as $1 million in year-end bonuses), and overall, packages will be around 30% smaller.
Traders and investment bankers getting from $100,000 to $249,999 were told they will get 20 per cent of that in cash, 20 per cent in restricted stock and 60 per cent in the new unrestricted shares, the people said. Employees (BAC) in this level typically received about 70 per cent of awards in cash and 30 per cent in restricted shares.
Payouts between $250,000 and $499,999 will be split among 18.75 per cent in cash, 25 per cent in restricted stock and 56.25 per cent in unrestricted stock. Historically, bonuses of that size would be split between 60 per cent cash and 40 per cent restricted stock.
Bonuses between $500,000 and $999,999 will be paid 15 per cent in cash, 40 per cent in restricted stock and the rest in unrestricted shares. That breakdown is more closely aligned with the historical practice of paying out 60 per cent of awards in cash and 40 per cent in restricted shares. Senior managers will get about 70 per cent of their packages in restricted shares with the rest in cash or unrestricted shares.
Whispers about this have been going around for a while, especially as CEO Brian Moynihan continuously talked about cost cutting at the firm.
And just so you know, the average VP at Bank of America makes around $175,000, a director might make $250,000, and managing director might make $400,000.