Bank of America (BAC) to Announce Hefty Bonus for Investment Bankers

Company Overview - Bank of America Corporation (BAC) shares have underperformed the industry over the past few months, with a reported gain of 10.7% over the last 12 months, lagging behind its Zacks Peer Group which gained 18% during the same period [4] - The bank is currently under regulatory scrutiny, having received a cease and desist order from the Office of the Comptroller of the Currency, and facing actions from the Consumer Financial Protection Bureau for alleged consumer protection failures [5] Investment Banking Sector - The investment banking business is showing signs of resurgence despite a challenging macroeconomic environment, benefiting from an uptick in mergers and acquisitions and a surge in underwriting for bonds and equities [2] - Interest rate cuts are expected to positively impact the company's net interest income, contributing to the overall recovery in dealmaking and equity markets [2][3] - Reports indicate that the bonus pool for investment bankers at Bank of America is likely to rise by 10% when announced in February, reflecting the recovery in the sector [1][3] Compensation Trends - The average annual bonus for Wall Street investment bankers reached $240,400 in 2021, more than doubling from 2011, although it is expected that this year's bonuses will not exceed 2021 levels [3]