Bank of America Corp. plans to give investment bankers more of their year-end bonuses in stock, in Wall Street’s latest wallet-squeezing response to a wrenching year.
Ever since the financial crisis, big banks around the globe have taken to paying workers in part with deferred stock that can be sold only over time, in a bid to rein in risk-taking. But the Charlotte, N.C., lender has come up with a new twist: It intends to pay a portion of cash bonuses, if they are large enough, with stock.
Bank of America told senior bankers this week that the cash portion of investment-bank bonuses, the part that is payable immediately, will be paid 25% in cash and the rest in stock that vests immediately, said a person briefed on the matter. The shift applies to bonuses above $100,000. Last year, the cash portion of bonuses was paid entirely in cash.
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The same bankers also will receive a portion of year-end bonuses in the form of deferred stock, as they did last year. The deferred-stock amounts will vary according to overall pay. A bank spokeswoman declined to comment.
Many banks with large operations on Wall Street are
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