BofA’s Moynihan Said to Have Blocked Proposal to Cut Broker Pay
Bank of America Corp. Chief Executive Officer Brian T. Moynihan blocked a proposal to cut the main component of most brokers’ pay as part of a new bonus plan, a person with direct knowledge of the matter said.
The proposal would have reduced the so-called grid payout for Merrill Lynch financial advisers by two percentage points, the person said, requesting anonymity because that plan wasn’t made public. The changes would have affected advisers generating less than $1 million in commissions.
Bank of America, the second-biggest U.S. lender, proceeded with the plan to introduce new bonuses for advisers who steer clients to use more of the bank’s products. In the weeks before that incentive was unveiled internally this month, Moynihan decided not to fund it by changing the grid, the person said.
David Walker, a Bank of America spokesman, declined to comment.
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