- Bank of America’s bonus pool is up slightly year over year, with bigger rewards skewed to top performers and flat-to-small gains for many others.
- Asia is reportedly seeing stronger payouts than the US and EMEA, reflecting better regional performance and competition for talent.
- Top investment bankers may get roughly 20% bonus increases, while mid-level payouts look flat, broadly in line with last year’s ~10% average rise.
- Junior bankers are frustrated that payouts fell well short of pre-Christmas expectations, with compressed performance buckets and more deferrals or stock awards.
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The latest reports signal that Bank of America’s bonus season is delivering modest gains rather than breakthrough increases. According to eFinancialCareers, internal sources describe the bonus pool as “up, but only by a small amount,” with more reward going to top performers while middle and support staff may see flat or small improvements. This softer tone stems from elevated expectations pre-Christmas, with some employees anticipating 38–59% jumps in their payouts—a forecast now widely regarded as overly optimistic.
For investment banking specifically, Reuters sources indicate a more aggressive increase for top dealmakers, pointing to potential ~20% rises, whereas mid-level roles are expected to land flat or slightly above previous year levels. These projections align with BofA’s growth in investment banking fees: full-year fees were up about 7% y/y, with good momentum in the second half of 2025 over the first. That said, confirming whether higher estimates have translated into paid outs will require further verification, as some parts of the bank (especially outside the front office) appear less rewarded.
Regionally, Asia is emerging as the strongest performer in this bonus cycle. Members in Asia are believed to be getting significantly larger bonuses compared with counterparts in the US and EMEA, reflecting both regional revenue strength (in markets and trading) and perhaps localized talent competition.
The junior ranks are the most discontented. Analysts and associates report that bonuses, particularly in the middle of performance grading (“Meets Expectations/Meets Meets/Exceeds Meets”) are tightly clustered, reducing the real differentiation expected between performance buckets. Also, bonus structures are increasingly deferring portions into stock or vesting over time—perhaps reflecting risk management or expense controls at BofA.
Strategically, BofA seems focused on rewarding its market‐facing business lines—investment banking, sales & trading—and driving revenue growth as heard in its earnings report. With record year revenue in global markets and strong growth in fee income in investment banking, the bank has both the performance justification and competitive pressure to lean into compensation increases for top talent. However, risk of morale loss among middle performers or in non‐front office areas could pose retention challenges.
Open questions include: how large is the bonus pool increase in absolute $$ terms? How much of bonus (especially at junior/mid levels) is being deferred or delivered as stock? What are the full year comparisons (2025 vs 2024) once final payouts are made? And can Asia maintain its leverage on compensation if US & EMEA performance lags?
Supporting Notes
- eFinancialCareers sources indicate BofA bonuses are “ok,” pool up only slightly, with higher spread between strong and poor performers; Asian bonuses seen as strong relative to US/EMEA.
- Reuters reported that top dealmakers at BofA might receive ~20% increases, while payouts for mid-level performers may be flat; average bonuses rose ~10% for preceding year.
- BofA’s full‐year investment banking fees are up ~7% year-over-year, with strong second-half momentum.
- Junior bankers’ expectations of 38–59% bonus increases were far above what many received; some associate bonuses were flat, analysts got between 30–90% of salary as bonus; performance buckets and deferrals increasingly prominent drivers of payout variation.
- An internal memo states that roughly 97% of BofA’s global workforce (all employees earning up to US$500,000) will share in a $1B+ restricted stock award pool.
- BofA’s global markets business had a record year with ~US$24B in revenues, up about 10%.