Bank of America (BAC) to Announce Hefty Bonus for Investment Bankers

Bank of America Corporation’s BAC shares have underperformed the industry over the past few months. Yet, reports suggest that the bank’s bonus pool for investment bankers will probably rise 10% when it is announced in February.The investment banking business has been showing signs of resurgence despite the challenging macroeconomic environment that is weighing on it. Banks around the world have benefited from an uptick in mergers and acquisitions and a surge of underwriting for bonds and equities. Also, with interest rates having come down, the company’s net interest income will be positively impacted. The company currently plans to open financial centers in new and existing markets and improve digital capabilities.There have been reports in recent days that payouts to investment bankers in 2025 are about to rise with them having benefited from a recovery in dealmaking, the interest rate cuts and surging equity markets. The average annual bonus in Wall Street hit $240,400 in 2021, more than doubling from 2011. While it is expected that Investment Bankers will walk away with a fat paycheck this year, the numbers are not likely to cross the 2021 levels.Bank of America is a Zacks Rank #3 (Hold) company and is part of the Zacks Financial – Investment Bank industry. JPMorgan Chase & Co. JPM and Citigroup Inc. C are two of its peers from the same industry. Both JPMorgan and Citigroup carry a #3 currently. Over the past 12 months, Bank of America has gained 10.7%, lagging its Zacks Peer Group, which gained 18% during the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.BAC has been under regulatory scrutiny, having received a cease and desist order from the Office of the Comptroller of the Currency. Also, the Consumer Financial Protection Bureau has taken action against the bank for alleged failures to protect consumers from fraud on the Zelle payment network and illegal credit card activities. However, these do not seem to have an impact on payouts to Investment Bankers.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks