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February 4, 2010 Thursday
Report: BofA approves $4B 2009 payout for i-bankers, traders
The 2009 average payout per employee, which will range between $300,000 and $500,000, is near to the average amount that the bank paid during its peak compensation year of 2006.
Bank of America Corp. is set to dole out in excess of $4 billion in 2009 compensation for its investment bankers and traders, The Wall Street Journal reported Feb. 3, citing a person close to the situation.
The approved 2009 average payout per employee, which will range between $300,000 and $500,000, is near to the average amount that the bank paid during its peak compensation year of 2006, the newspaper reported, citing the source. The compensation amount represents roughly 19% of the approximately $23 billion in revenue earned by the bank’s investment banking and capital-market activities.
The Journal reported that about 25% of average compensation will be paid in cash, and the rest will be deferred in the form of restricted stock or cash, varying on the basis of the company’s performance. If the company incurs losses in the future, certain portions of the payout will be subject to clawbacks.
The deferred cash or stock will be awarded over three years, and the restricted stock will vest over a year and a half, with the first portion available for sale in August.
Some employees receiving payouts of seven figures will get 5% of their 2009 payout in cash.
In an 8-K filed Feb. 2, the bank confirmed that it raised the base salary of CEO and President Brian Moynihan to $950,000 from $800,000. The base salaries of Joe Price, president of consumer, small-business and card banking, and Barbara Desoer, president of Bank of America Home Loans and Insurance, were increased to $800,000 from $500,000.
February 10, 2010