Have you heard? In spite of having the worst 2020 of any major bank, almost all of the rest of which literally broke records in the year of plague, Bank of America is digging deep, handing out $750 cash to all of its hard-working employees making less than six figures.
Oh, so you make more than $100K? Maybe even more than $1 million, possibly in the investment bank that made sure last year wasn’t nearly as disastrous as it could have been for Brian Moynihan & co.? Well, uh…
Cash portions of bonuses were still reduced, with the rest paid in company stock, according to the people, who asked not to be identified discussing pay. Vesting periods for stock awards were lengthened to four years from three…. The firm’s Wall Street workforce was already frustrated by bonuses that appeared to lag behind rivals. Many were befuddled by the more-restrictive pay policies, which further inflamed tensions among those who had expected bigger rewards for a bumper year.
The company told veteran employees Wednesday it was reversing course on the plan, which was introduced just last week, according to a person familiar with the matter. The change would have forced some long-tenured staff eligible for retirement to forfeit a major portion of their 2020 bonus…. Bank of America’s now-scrapped policy applied to staff looking to retire. Typically, senior executives are allowed to leave and have unpaid shares vest if their age plus number of years at the firm exceeds 60. But for 2020 bonuses, the bank gave staff a large portion of stock that would have been forfeited by those who took early retirement. Wednesday’s changes make the stock awards eligible for those retirees.
Of course, if you’re a misery loves company sort, and since you’re a BofA I-banker you must be, cheer up: Even if you ran a much, much more profitable bank, you’d still be getting stiffed big time. Of course, you didn’t preside over a massive, illegal bilking of a sovereign nation to deserve your kick in the pants, but still.
Mr. Solomon received a $17.5 million compensation package for 2020, down from the $27.5 million he got for 2019, according to a securities filing on Tuesday…. Mr. Solomon’s 2020 pay would have been $10 million higher but for the actions its board of directors took in response to the 1MDB saga, Goldman said in the filing…. John Waldron, Goldman’s president and chief operating officer, and Stephen Scherr, Goldman’s finance chief, saw their 2020 pay cut by 24% and 31%, respectively. Each would have earned $7 million more but for 1MDB.