By Saeed Azhar
NEW YORK (Reuters) – Bank of America’s bonus pool for investment bankers is likely to rise 10% over the past year, a source familiar with the matter told Reuters.
While the average increase will be 10%, some investment bankers will receive smaller payouts in the mid to high single digits, while other top performers would exceed 10%, two other sources told Reuters.
The bonuses will be paid in February after the bank announces its quarterly results on January 16, one of the sources said.
Global banks benefited from an increase in deal volume last year, led by mergers, acquisitions and a surge in bond and equity underwriting.
Bloomberg previously reported on the BofA increases.
BofA Securities ranked third in global investment banking fee deals in the fourth quarter, generating $1.4 billion in revenue, up sharply from $958 million in the same period in 2023, according to Dealogic data.
Compensation consultancy Johnson Associates said in November that Wall Street firms are expected to pay heavier bonuses for 2024, the first increase since a banner year in 2021.
Payouts are likely to rise after lenders benefited from several factors in recent months: a rebound in trading, the Federal Reserve cutting interest rates and stock markets soaring to record highs, the consultancy’s founder Alan Johnson said.
(Reporting by Saeed Azhar, Editing by Lananh Nguyen)
