Bank of America Raises Bonus Pool at Least 10% After Record Dealmaking

BACBAC

Bank of America plans to increase its 2025 bonus pool by at least 10% following a banner year in dealmaking and market activity. The firm joins JPMorgan Chase and Goldman Sachs in lifting payouts as investment banking fees rose significantly.

1. Bonus Pool Increase

Bank of America will boost its 2025 bonus pool by at least 10%, reflecting stronger revenue performance in its investment banking and trading divisions.

2. Drivers of the Rise

A surge in dealmaking fees and heightened market activity last year propelled the bank’s revenues, enabling the increase in employee payouts.

3. Peer Benchmarking

JPMorgan Chase and Goldman Sachs are also raising their bonus pools by a similar margin, underscoring industrywide profitability.

4. Financial Implications

Higher compensation expenses will weigh on Bank of America’s expense ratio, but may bolster talent retention and revenue growth continuity.

Sources

FY