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.