Deals & People March 30, 2009

Financial Engines to Service Hewitt-Administered 401(k) Plans

Participants in 401(k) plans administered by Hewitt Associates will now have access to financial advice from Financial Engines.
Reported by

A news release from the two companies said their alliance will mean participants will have access to a personalized retirement evaluation, online investment advice, and managed accounts.

According to the announcement, Financial Engines’ retirement income forecast—which provides an estimate of income in retirement and keeps participants focused on their long-term goals—will be included on the Hewitt participant Web site. Financial Engines’ advisers can implement savings decisions on behalf of participants in Hewitt-administered plans immediately because of the arrangement.

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“Hewitt believes offering investment advice and managed accounts to employees adds an important element of decision support to plan design, addressing the diverse needs and preferences within the population,” said Alison Borland, Hewitt’s leader of Retirement Outsourcing Product Strategy, in the release.


Deals & People March 30, 2009

BofA Bankers Could See 70% Salary Hike

Bank of America Corp. (BofA) might pump up the salaries of its investment bankers in order to match salaries of the recently acquired Merrill Lynch&Co.
Reported by

Bloomberg reported BofA might raise the salaries of some investment bankers by as much as 70%. 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. Sources said the changes are meant to equalize salaries between Charlotte, North Carolina-based BofA and New York-based Merrill.

BofA has gotten about $45 billion in bailout money from the government.

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The BofA/Merrill deal has generated much controversy, with a probe into Merrill employee bonuses (see “Cuomo Says Merrill Accelerated Bonus Payments’ and “Some BofA Shareholders Want Lewis Out’) 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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