BANK of America has set aside more than $4bn (£2.5bn) in pay for its investment bankers and traders, but only a quarter of compensation is expected to be paid in cash.
In an attempt to strike a conciliatory note in the face of public pressure, BoA will give its top talent the remainder of their 2009 salaries and bonuses in restricted stock or staggered cash, the value of which will vary with the bank’s performance.
BoA is also poised for a hiring spree for its global wealth management division. The bank is understood to want to add 2,000 junior retail brokers in 2010.
Meanwhile, Morgan Stanley plans to reduce its compensation as a percentage of revenue from 62 per cent last year to closer to 50 per cent.
City A.M. Reporter