• 04 Feb 2014 at 9:15 AM

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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Comments (22)

  1. Posted by Guest | February 4, 2014 at 12:11 PM

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

  2. Posted by Guest | February 4, 2014 at 12:12 PM

    Atlanta, charlotte….. you get the point.

  3. Posted by Guest | February 4, 2014 at 12:39 PM

    I once had a connection in Atlanta. Fuck, I gained 10lbs just from the airport food.

  4. Posted by Guest | February 4, 2014 at 12:41 PM

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

  5. Posted by Guest | February 4, 2014 at 12:56 PM

    You shouldn't have eaten so much.

  6. Posted by Guest | February 4, 2014 at 1:11 PM

    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.

  7. Posted by Dallas Thunder | February 4, 2014 at 1:14 PM

    Kettle calling the pot into the fire banana.

  8. Posted by TermsUCanUnderstand | February 4, 2014 at 1:58 PM

    That was a bad comment and you should feel bad

  9. Posted by Guest | February 4, 2014 at 2:03 PM

    Yeah, Applebee's is the shit.

    - BofA Rates Analyst

  10. Posted by Guest | February 4, 2014 at 2:11 PM

    Atlanta is the f*ing rake.

  11. Posted by Credit Swiss Cheese | February 4, 2014 at 2:29 PM

    Houston checking in. Can confirm.

  12. Posted by Guest | February 4, 2014 at 3:24 PM

    Well your mom tasted like whale sushi + bacon.

  13. Posted by Guest | February 4, 2014 at 3:40 PM

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

    -Almost everyone everywhere

  14. Posted by Guest | February 4, 2014 at 4:19 PM

    My mom died in a car accident when I was a young child.

  15. Posted by Guest | February 4, 2014 at 4:36 PM

    You are right. Whale sushi + smoked bacon, then.

  16. Posted by Guest | February 4, 2014 at 4:36 PM

    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

  17. Posted by Guest | February 4, 2014 at 4:53 PM

    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.

  18. Posted by No Remorse | February 4, 2014 at 4:56 PM

    ^^just made my day

  19. Posted by AnnadaAnath | February 4, 2014 at 6:40 PM

    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.

  20. Posted by Guest | February 4, 2014 at 6:59 PM

    You mad bro?

  21. Posted by Quant me maybe... | February 4, 2014 at 8:47 PM

    Wrong church, wrong pew, dude.

    Yahoo! is that way >>>>>>

  22. Posted by Intensebetade | February 4, 2014 at 9:15 PM

    Still, it is way better than Morgan Stanley