LONDON Feb 3 Bank of America Merrill Lynch
is raising salaries for some of its senior bankers by
about 20 percent, a person familiar with the matter said on
Monday, to get around a new European Union cap on pay.
EU rules that limit bonuses to no more than annual salary,
or twice that with shareholder approval, came into force last
month. Many financial institutions, worried about losing top
talent to international competitors, are restructuring pay as a
Under the plan, the salaries of Bank of America front office
managing directors based in the EU will be $500,000 and the bank
is considering handing out extra cash payments to senior staff
twice a year which will count as fixed salary rather than a
bonus, the person said.
A Bank of America spokesperson declined to comment.
In November Barclays unveiled a plan to give senior
bankers additional monthly payments and last month an industry
source said HSBC is considering giving out shares to
about 1,000 top-ranking staff.