We all know BofA had paid like shit the past few years. Will the RIFs earlier in the year (~150 bankers) finally increase the bonus pool to the point where people are paid the market rate? Or will they keep the money for themselves?
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Hahahaha
well I mean right now they expect IB fees down 20% roughly from last year, so unless it gets a lot better it will probably be close to last year I would think? I think way better though if it turns around
One thing I learned at BofA is the pay (especially for juniors) is not correlated with revenues at all. If they can screw you, they will. There is too much supply these days and apparently BofA pays a discount to other banks due to the purported good “lifestyle” there
Analyst comp was normal last year asso/vp not so much 😔
My guess is flat YoY. In addition to the RIFs, there were a lot of exits in each group - so much less mouths to feed.
But if bonuses were to actually go up, the discount to market is just too large for everyone at BofA to catch up in a single year. Based on real data I’ve seen, Associates and VPs at other banks are paid like ~$75-100k and ~$200k more, respectively. Four consecutive years of that is a lot of bread… I don’t see the firm taking care of everyone anytime soon.
Yeah that’s what I was kind of thinking / hoping. There was a mass exodus this year in addition to the RIFs, so maybe headcount has been adjusted to what it should be. But the declining fees could bring down revenue per head to what it was last year.
People have been rationalizing the past 3 years and have gotten screwed every time, so not getting my hopes up. Agree that one year of decent bonuses isn’t enough of a reparation anyway… as a VP you missed out on hundreds of thousands of dollars if you stayed the past few years.
Agreed, I think if fees were up 20% bonuses would be good, but the bank could also pay high to keep the new wave of juniors on… who knows
Lol if fees were up 20%, bonuses will still be shit. The reality is there’s a long list of things mgmt would rather do with that money than pay higher bonuses. Plus, the BofA discount is way too large at this point. There is not enough $, and it’s not high up on the to-do list for mgmt to pay associates $75-$100k more and VPs $200k+ more JUST to be at market. It would take years to catch up, if ever. If you are looking to make money, you’re much better off lateraling to literally any other shop. Many of my friends who left BofA are making 50% more to double what they did before
Agreed. The discount to market is so large that it won’t be possible for the firm to catch people up in one year. Even if they pay the median VP2 or whatever $50k more than a median VP2 got last year, they’re still getting paid ~$100k below market. It’ll take multiple years for the pay to catch up to market, if it ever does.
Dont kid yourself, teams are still gonna be way overstaffed. Bonuses will be flat to down
Nahhhh dude
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