Morning Coffee: Bank of America's big salary and bonus generosity. Compliance job nightmare
There have been mixed reports of bonuses at Bank of America. While some people there were pleasantly surprised, others are said to have had aCiti-esque shock. At the top of the investment bank, however, all was well.
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Bank of America issued its 2023 proxy statement yesterday. It showed that popular head of tradingJim De Mare received an 11% pay rise to $21m, while head of banking Matthew Koder received a 5% pay rise to $16.5m. Both men received bigger bonuses. They also received $1m salaries, up from $667k salaries just two years ago.
BofA's generosity to the men running its investment bank comes after it was more circumspect in itspay for CEO Brian Moynihan, whose compensation was trimmed for the second year running, to $29m.
While Brian's dwindling bonus might be down to his sheer enthusiasm for the job, meaning he doesn't need more pay to stay, De Mare and Koder were paid more last year because their respective divisions delivered the highest revenues on record. De Mare's global markets also had zero loss making trading days and he ran mentoring programs and conversed with senior leaders. Koder expanded middle market coverage and offered «employee programs and resources.» This is how to make the big bucks.
While both men should be happy, though, De Mare might be happiest. Not only is he earning more than Koder, but on a longer time horizon, Koder appears to have a pay cut. In 2021, Koder was earning $20m. Last year, profits in his global banking business were 4% higher than they were then.
Separately, spare a thought for the people working in compliance. Financial News suggests theirs is a grueling existence, struggling with «policy overload», understaffing and
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