{"id":638,"date":"2009-02-12T09:16:50","date_gmt":"2009-02-12T17:16:50","guid":{"rendered":"http:\/\/hodakvalue.com\/blog\/?p=638"},"modified":"2009-02-13T07:07:25","modified_gmt":"2009-02-13T15:07:25","slug":"bank-of-americas-retention-plan","status":"publish","type":"post","link":"http:\/\/hodakvalue.com\/blog\/bank-of-americas-retention-plan\/","title":{"rendered":"Bank of America&#8217;s retention plan"},"content":{"rendered":"<p>Bank of America had announced a <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/51df9ac6-ecb5-11dd-a534-0000779fd2ac.html?nclick_check=1\">deferral program<\/a> for their IB bonuses this year that included stretching out payment over the next <span style=\"text-decoration: line-through;\">four<\/span> three years.<\/p>\n<p>So, BofA got bankers to work for relatively low salaries with the promise of potentially significant bonuses (the norm in investment banking).\u00a0 The IBs had a crappy year, so their bonuses are down by, like, 80 percent.\u00a0 Fair enough.\u00a0 Now, they&#8217;re told that their bonuses, such as they are, won&#8217;t actually get paid this year.\u00a0 And, they aren&#8217;t actually vested in the payout&#8211;if they leave, they forfeit them.\u00a0 And that instead of getting cash, they&#8217;ll be getting 30 percent of their bonus in equity.\u00a0 Boy, they&#8217;ll be burning the candles on both ends for that one!<\/p>\n<p>Maybe BofA&#8217;s reasoning was something along the lines of, &#8220;Well, we accelerated the bonuses for Merrill employees, so if were radically defer the bonuses for our other employees, maybe the public will consider us even, you know, on average.&#8221;<\/p>\n<p>Maybe this new policy led to <a href=\"http:\/\/dealbreaker.com\/2009\/02\/caption-contest-thursday-1.php\">this sign<\/a>?<\/p>\n<p>HT:\u00a0 The ever-fabulous <a href=\"http:\/\/dealbreaker.com\/2009\/02\/bonus-watch-09-bac-2.php\">Dealbreaker<\/a><\/p>\n<p>Update:\u00a0 BAC apparently reconsidered, and made the deferrals slightly less back-ended (no pun intended)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America had announced a deferral program for their IB bonuses this year that included stretching out payment over the next four three years. So, BofA got bankers to work for relatively low salaries with the promise of potentially significant bonuses (the norm in investment banking).\u00a0 The IBs had a crappy year, so their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-638","post","type-post","status-publish","format-standard","hentry","category-executive-compensation"],"_links":{"self":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/comments?post=638"}],"version-history":[{"count":4,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/638\/revisions"}],"predecessor-version":[{"id":640,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/638\/revisions\/640"}],"wp:attachment":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/media?parent=638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/categories?post=638"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/tags?post=638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}