BoA Approves $4B in Compensation
The money is equal to about 19 percent of the $23 billion in revenue created by BoA's investment banking activities and is close to the company's 2006 compensation packages, the source told the Journal ($).
"We tried in determining year end compensation to balance the need to pay competitively with the need to recognize the general concerns about the level of compensation on Wall Street," a BoA spokesman said.
According to the source's estimates, the workers receiving compensation stand to earn between $300,000 and $500,000.
The report comes as speculation heats up that failed insurance giant AIG will hand out $100 million in bonuses this week.
Bank of America Corp. reported in January that it lost $5.2 billion at the end of 2009, citing struggling consumers unable to make mortgage and credit card payments as a catalyst.
BoA said $4 billion of its losses were the result of paying back $45 billion in government bailout money in December.