By Saeed Azhar and Milana Vinn
NEW YORK, Dec 19 (Reuters) – Bank of America will boost bonus payouts for its best performing investment bankers and increase its bonus pool for the division after a surge in deals this year, according to two sources familiar with the matter.
Top dealmakers could get increases of about 20%, while payouts could be flat for mid-level performers, one of the sources said. Year-end compensation discussions are still in progress, and the numbers could change.
Last year, the second-biggest U.S. bank increased average bonuses by 10%. The bank traditionally informs bankers about the payouts in January.
BofA declined to comment.
The lender is ranked third in global investment banking revenue, maintaining its position from 2024, according to preliminary data from Dealogic.
JPMorgan Chase and Goldman Sachs are first and second, respectively, the data showed.
BofA was ranked fourth on the global mergers and acquisitions league table. It advised Norfolk Southern on its $85 billion combination with Union Pacific in a historic rail merger, which earned the bank $130 million, according to a regulatory filing.
The lender aims to increase its share of investment banking fees by between 50 and 100 basis points in the next three to five years, seeking to catch up as it has consistently lagged rivals JPMorgan and Goldman Sachs.
BofA plans to retain top talent in M&A and hire strategically where it has gaps, participate more in mega deals of $5 billion and above, and expand share in middle-market deals, executives told investors last month.
CEO Brian Moynihan told investors this month that he expects investment banking fees to be broadly flat in the fourth quarter, while revenue from the markets business will likely rise between a high single-digit percentage and 10%.
Broader Wall Street bonuses are expected to climb for the second year for traders and investment bankers on surging deal volume and market volatility, according to financial compensation consultancy Johnson Associates.
The bonus pool is expected to be the highest since 2021, when deals and profits surged to a record.
(Reporting by Saeed Azhar and Milana Vinn, editing by Lananh Nguyen)
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