Bank of America Investment Bankers Set for 10% Bonus Increase in 2024

Bank of America’s bonus pool for investment bankers is expected to rise by 10% for 2024, according to a source familiar with the matter. However, payouts will vary, with some receiving increases in the mid-to-high single digits and top performers exceeding the 10% benchmark, other sources revealed.

The bonuses, scheduled for February distribution, will follow the bank’s fourth-quarter earnings announcement on January 16. This boost reflects a surge in global dealmaking during 2024, driven by mergers, acquisitions, and robust bond and equity underwriting activity.

BofA Securities secured third place in global investment banking fee rankings for the fourth quarter, earning $1.4 billion in revenue—a significant jump from $958 million during the same period in 2023, as reported by Dealogic.

Wall Street compensation is also trending upwards, marking the first substantial increase since 2021. Johnson Associates, a leading compensation consultancy, predicted higher bonuses across financial firms, citing factors such as the Federal Reserve’s rate cuts, record equity market performance, and a rebound in transactional activity.

Bloomberg first reported the anticipated bonus increases, which underscore a strong year for Bank of America and the broader financial sector.