By Saeed Azhar
NEW YORK (Reuters) – Bank of America’s bonus pool for investment bankers will probably rise 10% for last year, a source familiar with the matter told Reuters.
While the average increase will be 10%, some investment bankers will get smaller payouts in the mid-to-high single digits, while other top performers would exceed the 10% range, two other sources told Reuters.
The bonuses will be paid out in February after the bank announces its fourth-quarter earnings on Jan. 16, one of the sources said.
Global banks have benefited from an increase in dealmaking last year led by mergers, acquisitions, and a surge of underwriting for bonds and equities.
Bloomberg earlier reported on the BofA increases.
BofA Securities ranked third on the global deals for investment banking fees in the fourth quarter, earning $1.4 billion in revenue, up sharply from $958 million in same period in 2023, according to Dealogic data.
Compensation consultancy Johnson Associates said in November that Wall Street firms are expected to pay heftier bonuses for 2024, the first increase since a bumper year in 2021.
Payouts will probably rise after financiers benefited from several factors in recent months: a recovery in transactions, the Federal Reserve cutting interest rates and equity markets surging to record highs, said the consultancy’s founder, Alan Johnson.