Administration March 30, 2009

BofA Bankers Could See 70% Salary Hike

March 30, 2009 (PLANSPONSOR.com) - Bank of America Corp. may raise the salaries of some investment bankers by up to 70% as a result of its acquisition of Merrill Lynch & Co., Bloomberg reports.
Reported by

Citing “people familiar with the proposal,” Bloomberg said salaries of some managing directors in the investment banking arm might go from $180,000 to $300,000, and other directors could see their pay go up from $150,000 to $200,000. The sources said the changes are meant to equalize salaries between Charlotte, North Carolina-based BofA and New York-based Merrill.

The Atlanta Business Chronicle pointed out that BofA has gotten about $45 billion in bailout money from the government.

The BofA/Merrill deal has generated much controversy with a probe into Merrill employee bonuses (see NY AG Moves to Force Former Merrill CEO to Discuss Employee Bonuses ) and a number of shareholder suits (see Public Pension Group Vies for Lead Plaintiff in BoA Suit ).

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