Bank of America will keep bonuses steady for its employees in 2023 despite challenges facing investment banking and trading businesses. 

The bank will reward its top performers with higher payouts. 

Still, the overall investment bankers’ bonus pool will remain the same or be up to 3% lower than the previous year. 

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• Bank of America keeps bonuses steady despite a slowdown in investment banking and trading.

• Star performers in investment banking and trading units will see bigger payouts.

• Emphasis on retaining top talent across the bank amid uncertain economic conditions

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Bank of America Maintains Steady Bonus Payouts Despite Business Challenges

The bank’s investment banking fees increased by only 7% in Q4 2022. 

They rose by 2% in the full year due to lower demand for deals amid economic uncertainty, rising interest rates, and geopolitical tensions.

Bank of America wants to retain its top talent, positioning itself for a future rebound in mergers and acquisitions and other investment banking activities. 

Bank of America’s traders can expect flat or modestly higher bonuses for 2023, with high single-digit increases for mortgage and credit traders following impressive results. 

This approach aims to retain the bank’s key contributors while controlling costs.

The bank and its competitors must balance controlling expenses as business slows while preventing employees from leaving, which could hamper their ability to capitalize when markets improve. 

The bank’s steady payouts, with bigger boosts for top performers, aim to achieve that goal. 

For rank-and-file employees earning $500,000 or less, Bank of America will award them with stock, a move that follows similar efforts by rivals to retain key personnel across the organization.

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