Bank of America is planning to defer bonus payments to investment banking staff this year – a move certain to inflame tensions between its employees and those of newly acquired Merrill Lynch. Andrew Cuomo, New York attorney-general, is investigating Merrill’s decision to accelerate the payment of nearly $4bn in bonuses – mostly in cash – to its employees, just days before its sale to BofA on Jan 1. With that probe under way, BofA was expected to tell investment banking staff on Thursday it would defer 2008 bonuses of $50,000 or more, say executives familiar with the decision. They will be paid the first third of their bonuses in February 2010, with the remaining thirds paid in 2011 and then 2012, the executives said.

This entry was posted by Gwen Robinson on Thursday, January 29th, 2009 at 5:51 and is filed under Capital markets, People. Tagged with BofA, merrill lynch. Edit this entry.