(Reuters) - Bank of America Corp has been paying millions in bonuses in order to lure talent and retain investment bankers the company views as vital, the New York Post reported, citing sources.
Among those who are said to have received payouts are two former Merrill Lynch bankers, Fares Noujaim, recently appointed BofA’s vice chairman of investment banking, and Harry McMahon, the paper said.
Both were offered guarantees not to leave, the paper said.
Noujaim, a former Bear Stearns banker who joined Merrill last year, is said to have received about $15 million over two years, according to the paper.
Sources told the paper Noujaim was offered a vice-chairman role, and may have been offered at least $5 million more to stay. His earlier employment contract was nullified once Merrill merged with BofA earlier this year, according to the paper’s sources.
“Competitive recruiting in investment banking and capital markets continues to be very intense and we’re taking the steps necessary to retain key talent in response to competitive pressures,” BofA spokeswoman Jessica Oppenheim told the paper.
She also said any reference to specific associate’s compensation in the report was “inaccurate.”
Bank of America could not be immediately reached for comment.
Reporting by Chakradhar Adusumilli in Bangalore; Editing by Dan Lalor