Bank of America Corp. scrapped a proposed bonus policy this week after it provoked the ire of high-earning traders and dealmakers, some of whom could have missed out on a big chunk of their compensation.
The company told veteran employees Wednesday it was reversing course on the plan, which was introduced just last week, according to a person familiar with the matter. The change would have forced some long-tenured staff eligible for retirement to forfeit a major portion of their 2020 bonus. Chief Executive Officer Brian Moynihan, Chief Operating Officer Tom Montag and Chief Human Resources Officer Sheri Bronstein were among the leaders who decided to abandon the idea.
