Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following the takeover of Merrill Lynch & Co., people familiar with the proposal said.
Bank of America, which has received $45 billion of taxpayers’ money, may raise the annual base pay for some managing directors to about $300,000 from $180,000, said the people, who declined to be identified because the final numbers are still under discussion. Salaries for less-senior directors would climb to about $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, the people said.
Bank of America May Raise Investment Bankers’ Salaries by 70% [Bloomberg]
this is because people fear the word “bonus”
this is because people fear the word “bonus”
also, “this will end in tears” is a comment
Yep, this will go over really well with the masses of furrow-browed sheeple.
“I never say never, but I’ve had all the fun I can stand in investment banking at the moment.”
Perhaps not?
This is so they can surpass that magical $250 number and have the government tax them to death.
Seems like a great idea. Should make everything all better. Super.
i thought i read something (albeit in the comments) about a 3% salary increase cap for tarp babies. maybe i was mistaken…
this is old news – happened last week for MD’s in UK across several firms
this defeats the purpose. that said, I approve of that message. if we can bring salaries up to a livable wage, year end bagels will be more palatable. and by the way, for all of you who got $hit canned without pay, this confirms that the bonus was indeed part “salary”…bring on the lawsuits!
Typical piss-poor writing from Bloomberg….comment a few paragraphs down that this was done to align pay at BofA with pay at Merrill.
Salaries are the same at both, only bonuses were different. So are they going to double salaries at BofA, and continue to give no/crappy bonuses, but keep Merrill salaries low and pay bonuses? No. they’re going to increase everyone’s salaries and cut everyone’s bonuses.
It would be nice if the reporters could get the facts correct, since these types of articles are the only data points “main street” has on pay in finance…..
@9-did it happen in the us for BAC? No? Then STFU.
AIG commercial.
http://www.youtube.com/watch?v=8QsWZxwRPcY&feature=dir
MAD MAX: You’re paying yourself more fees?! This is just you Wall Street Types and Masters of the Universe trying to help out those CEO’s of the Credit Defualt Swaps that are used by Goldman Sachs and the CIA. I’m on to your Linkages.
Bingo Bitches.
What are analyst numbers?
This is the guy who told Fortune in September: “Merrill was paying typical Wall Street pay… We intend to pay market instead.”
@11- the fact remains the bac is raising pay, period.
well if anyone deserves it they do.
@17: They’re not raising “pay”, they are raising salary. It appears that overall comp will remain the same.
And my question (#11) still stands–everyone is BofA now, both legacy BofA and legacy ML, so is everyone getting raises, or just legacy BofA
I agree with you they are raising one area of comp, I’m just saying it would be nice if reporters did the proper research before releasing an article that doesn’t make much sense….
I hear ACORN is already getting the bus tours ready!
Should help some of the transportation stocks.
How does this affect Equity Research?
- Judson
Breaking shamwow news!!
http://gawker.com/5187540/shamwow-guy-beats-up-cannibal-hooker
ML’s salaries are higher than BAC but not by 70%. This is bumping both up.
it’s not investor, it’s inWestor
@23: I don’t think that’s correct. I know they are not higher at analyst, associate, and VP level, and I doubt there is any difference higher up.
I know definitely that for associates all investment banks pay the exact same salaries. Then after a few years there might be a slight difference between banks, but we’re talking $5-10K max.
BAC US raises effective 4/1 barring a backlash that turns it into April Fools’ for vp and higher.
@25 You doubt wrong. There is a significant difference between Merrill and BAS salaries at the Principal and MD level. You can guess which firm pays higher salaries. Initially, the rumor was that Merrill salaries would be reduced. But with the daily ML defections, Lewis figured out he would be further f**ked with that strategy.
@11 You are totally wrong as well about salaries being the same at BAC and ML. WTF, why would you post such piss poor crap.
why on earth should comp even remain the same when there is no money in the kitty and further losses as far as the eye can see. Cutting it by half across the board would be a good start…..And don’t fear the brain drain, where do they have to go?
What brains are you referring to?
Banker skills are dead
@29 and @30 Go back to under your rock. The bankers that structured all the leveraged deals are now the bankers doing the workouts. The bankers that did all the auction rate deals are now the bankers doing all the restructurings.
Better get back to Yahoo Finance before sundown.
@31
Don’t be retarded. Why would you pay top dollars to the people who created the mess? Like they are the only ones who know how to write of worthless paper? Your sense of entitlement exceeds the welfare queen collecting her check by driving her Cadillac to the unemployment office. Methinks you’ll be there before long.
associates and analysts left out, I presume?
@33, as well as the drones in sector 7G.
Now the 90% bonus cuts for operations drones begins to make sense, yes?
10 cents is a dime to much for the cocksuckers at merrill
Believe associates will get a pay raise . But not analysts.
fuck you, 36. seriously, fuck you. go back to communist.ru
Or the New York Times, not much difference
seriously, all this brain drain crap has been way overblown. I thought when bonuses were cut 40%+ at my bank’s FI trading desk this year, I’d see several people hit the road. Almost none have. WTF. Get going already. You’re not getting paid next year either. Can’t you assholes retire already ? It seems like you could just set bonuses to 0 and noone would leave because they have nowhere else to go and weren’t smart enough about their savings in the good years (shocking)
Do you know if this raise will be automatic for everyone or will they just change the cap and increase it for selective employees?
@1&2
No it’s because some people don’t understand that a bonus is not part of a salary. It is paid for reaching objectives besides showing up for work and bk’ing your company.
Analysts = no change
Stub/1st Associates = $95k (no change)
2nd Year Associates + = $125k – $150k
VP = $175k – $200k
Director = ~$250k
MD = $300k
Nothing official is known yet and apparently the powers that be keep going back and forth on the final decisions.
@42 – get some new material and go back to passing fries to customers through the window. You obviously have never had a Street job.
@40, you literally have no idea what you are speaking about. People are walking off of the desk in droves. Good rev generators too….
You would know if you worked on wall street. Not just anyone can walk up and run a desk or generate $$$. Does not work like that.
Why stick around if you are not going to be paid and Deutche is hiring?
44,
Are you the guy that changes the liner in the trash cans? I guess that does qualify as a Street job. What was the bonus during the good years?
@43: that seems in line with the rumors on the street.
What is the reasoning behind leaving the analysts and 1st year associates at current levels? Will their bonuses be a higher portion of their compensation than at upper levels, or are they simply getting an overall cut in pay?
I believe the reasoning is that they don’t add any value and can’t go anywhere else. All those that do leave will be replaced by unpaid interns.
btw gov of NY State just reached a “compromise” in legislature to tax incomes over $300,000 at 7.85% and incomes over $500,000 at 8.97%
pity the poor fools who just got a bump
enjoy the Leviathan suckers
why should the underperforming banker get paid more than a construction worker who actually builds something? makes no sense at all.
@51, cause the construction worker can’t build anything until someone approves a construction loan. Makes perfect sense.
50 You could move to FL where there’s no income tax. You’ll also find some real cheep places to live. The houses around you may be boarded up and vandalized but that’s a small price to pay. Oh wait – there are no jobs beyond min wage, and most of those involve fast food or bedpans. Never mind. Maybe NY/NJ/CT is not so bad after all.
Did these increases actually take place?