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Bonus Watch ’14: Bank of America

Bank of America’s got good news if you’re a managing director in Europe and less good news if you’re a rates trader in Charlotte.

Bank of America cut the bonus pool for interest-rate traders by 15 percent to 20 percent as revenue fell, said two people with direct knowledge of the matter. Senior traders probably got larger percentage drops than lower-paid personnel, according to the people, who asked not to be identified because the awards are confidential. Employees across the Charlotte, North Carolina-based company’s trading units were told the size of their 2013 bonuses last week and will be paid Feb. 14, the people said. “Rates guys were among the worst hit last year,” Michael Karp, chief executive officer of recruitment firm Options Group Inc., said in a phone interview. “It was a very tough year in terms of keeping up with the markets and generating revenue.”

[…]

In Europe, salaries are going up as regulators consider banning bonuses bigger than twice fixed pay. The change is intended to discourage excessive risks. Bank of America is boosting salaries for some managing directors there by about 20 percent to $500,000, a person with knowledge of the matter said. New York-based Goldman Sachs also intends to increase fixed pay for some senior employees and traders in Europe, a person with knowledge of the firm’s plan said last month.

BofA Said to Cut Bonuses for Rates Traders at Least 15% [Bloomberg]

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22 Responses to “Bonus Watch ’14: Bank of America”

  1. Guest says:

    rates raders in Atlanta? I thought they were all tellers there.

  2. Guest says:

    God, as if being in Charlotte wasn't bad enough.

  3. Guest says:

    MD: You're a rates guy, so I'll explain in terms you can understand. Your bonus is being cut 15-20%, so you know what amount you're getting.

    Analyst: 80-85% of the cost for a night out at Applebee's.

  4. Guest says:

    Atlanta is the f*ing rake.

  5. Credit Swiss Cheese says:

    Houston checking in. Can confirm.

  6. Guest says:

    MDs in Europe? Rates traders in Charlotte? What is that, all-in, about 12 people? Seriously: who cares?

    -Almost everyone everywhere

  7. Guest says:

    But, the good news is you will also get:
    1) 10,000 spirit points
    2) $500 spot bonus for your work on the cancer walkathon
    3) 15% off 2014 Turbotax software with your company discount, and
    4) your choice of a BofA fleece jacket or nylon briefcase

    • Guest says:

      It's not hard to mock BofA, but still you failed to be funny. Next time maybe try to work a little more "cancer" into your one liners.

  8. AnnadaAnath says:

    Should we all be shedding tears for this "poverty" these masters of the universe are exposed to? Sorry, I can't, and possibly millions like me, who are unemployed and barely scrounging by with infrequent consulting gigs. Speaking for myself, despite all the qualifications in my line of work, I'm a brown-skinned male, so I don't make the "culture fit" that corporate (read: white) America wants in its ranks. So in one word: CHILL.

  9. Guest says:

    You mad bro?

  10. Intensebetade says:

    Still, it is way better than Morgan Stanley