Bank of America Corp is raising the base salary for senior bankers, according to a person familiar with the matter, its latest attempt to retain top talent in one of the most competitive years for pay on Wall Street, Trend reports with reference to Reuters.
Just a day earlier, the bank said 97% of its employees would get special compensation awards with a total value of nearly $1 billion, reflecting a 47% increase in its stock price last year.
Bloomberg News had reported earlier on Wednesday that Bank of America raised base salaries for its managing directors in investment banking and markets to $500,000 from $400,000.
Directors can get a raise to as much as $350,000 this year, compared with $250,000 in 2021, while vice presidents will get a boost to $225,000, the report added.
The bumper bonuses and salary raises underscore the pressure on Wall Street banks to retain their best performers.
Goldman Sachs increased its 2021 bonus pool for top-performing investment bankers by 40% to 50%, while JPMorgan Chase increased it by 30% to 40%, Reuters reported earlier in January.
Like its peers, Bank of America also expects higher expenses from bonuses and other revenue-based compensation in 2022.