Bank of America associates learned their bonuses and they feel nostalgic
Bank of America announced its bonuses yesterday. They were moderately good but if you're an associate there, you might be inclined to think of the past.
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Bank of America isn't commenting, but multiple associates in the investment bank tell us their bonuses were ok for last year, but were not the best. The disappointment is most acute when 2025 bonuses are juxtaposed with what associates were earning a few years ago.
"Top-ranked people got bonuses that were 75% of salaries," says one associate at the bank in London who purports to have canvassed colleagues. "A few years ago, it was more like 110%."
Another BofA associate in the investment bank in Europe says associate bonuses there this year vary between $25k and $120k and that sentiment is "mixed." "Expectations were strong after a strong year, but on balance it is ok," he says.
When combined with associate salaries of $160k, this year's bonuses mean BofA's top-performing associates are earning total compensation of $280k.
Their lack of excitement about this isn't just due to the historically diminished bonuses, but to deferrals. "75% of base is not very exciting once you take into account that 30% of the bonus is paid in stock vested over four years," says one associate.
Disgruntled people can always move. "There will be more jobs this year, the market is opening up," says one junior, hopefully. "Hiring will be slower because of AI, but banks still need to train future MDs," he also adds.
Logan Naidu, CEO of Kernel Global says early indications are that this was a down round for associate bonuses in the UK. In the US, though, bonuses across the market seem to be higher. Meridith Dennes at New York search firm Prospect Rock Partners says bonuses there are up 28% to 42% this year.
As a result, Dennes says associates two and three in the US are earning between $333k and $380k (2) and $370k and $418k (3).
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