Bank of America Bonuses Get a 10% Lift: What You Need to Know About This Year’s Payouts

According to recent reports, Bank of America investors anticipate receiving higher dividends.

Sources revealed on Thursday that bonuses for Bank of America’s investment bankers are expected to rise 10% compared to the previous year.

While the average bonus increase is estimated at 10%, mid-range performers may receive smaller, single-digit hikes, while top performers could see bonuses surpassing the average rate. These bonuses are scheduled for distribution in February, following the announcement of fourth-quarter results on January 16.

Global banks experienced significant gains last year due to increased deal activity, fueled by a mergers and acquisitions (M&A) surge and strong bond and equity underwriting.

Diologics data indicates that Bank of America ranked third in global investment banking fee transactions, earning $1.4 billion in 2023, a notable rise from $958 million in 2022.

Alan Johnson, founder of compensation consulting firm Johnson Associates, stated that financial professionals will likely see increased payouts. He attributed this to factors such as a rebound in deal activity, Federal Reserve interest rate cuts, and a bullish stock market.

Johnson Associates noted in November that Wall Street firms are expected to boost dividend payments in 2024 for the first time since the record-setting year of 2021.

Bank of America’s stock remained stable at $46.21.