Report: Bank of America cutting cash portion of bonuses
Bank of America, which got and repaid $45 billion in taxpayer money, will significantly cut the cash portion of the bonuses it pays to executives, tilting more toward stock rewards, Bloomberg is reporting.
Senior bankers will get only 5 to 15 percent of their bonuses in cash, with the rest coming in Bank of America stock. Junior bankers may get as much as 25 percent of their bonus in cash.
As I wrote here yesterday, figuring out how much bonus someone should get -- and how much should come in cash -- is no slam-dunk. Bonuses are a real part of a household's yearly budget and they come all at once, once a year.
The BofA bonuses get paid out in February.
-- Frank Ahrens
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January 13, 2010; 2:47 PM ET
Categories: Corporations , The Ticker | Tags: Bank of America, bonuses, executive compensation
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