BofA May Pay Bigger Chunk Of Bonuses In Cash

Bank of America BAC, the largest U.S. bank by assets, may opt to pay a higher percentage of employee bonuses in cash for 2010 compared to what was paid in cash in 2009, according to a report in the Wall Street Journal. Bankers and traders making more than $5 million may be paid as much as 30 percent of their 2010 compensation in cash and at least 70 percent in deferred stock, the Journal reported. Bonuses for the highest ranking BofA executives, including CEO Brian Moynihan, will be 100% deferred. JPMorgan Chase JPM, BofA's biggest rival, has deferred compensation of 50% for its executives and in some cases the percentage is higher, the Journal noted. Rivals may be irked by BofA's compensation scheme. Goldman Sachs GS and Morgan Stanley MS recently announced they would link more an employee's compensation to the future performance of the firm, a move that has been viewed as an effort to minimize unnecessary risk taking. European banks have expressed concern that a lack of uniformity regarding pay standards between U.S. and European banks could make European financial firms vulnerable to staff departures as employees seek the most lucrative compensation and bonuses, the Journal reported.