BofA bankers to receive greater share of bonus in cash

31 January 2011

Bankers working for Bank of America (BofA) Merrill Lynch could receive a greater proportion of their annual bonuses in cash, a news report has revealed.

According to the Wall Street Journal, the highest earners at the financial institution previously received five per cent of the sum as cash.

However, the bank is now expected to pay executives earning more than $5 million as much as 30 per cent of their bonus in this form with the rest being distributed as deferred stock.

Some executives are expected to as much as 80 per cent as stock and the remaining 20 per cent as cash.

A BofA spokesman told the news provider: “We feel that our pay practices are fair and appropriate for our employees and our shareholders.”

The figure was thought to be five per cent the previous year due to BofA repaying the money it borrowed from the government following the global credit crisis.

BofA only paid five per cent as cash in part because of the conditions attached to its repayment of funds to the government for financial assistance during the global credit crisis.

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