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.
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’).