LONDON, Feb 3 (Reuters) - Bank of America Merrill Lynch is raising salaries for some of its senior bankers byabout 20 percent, a person familiar with the matter said onMonday, to get around a new European Union cap on pay.
EU rules that limit bonuses to no more than annual salary,or twice that with shareholder approval, came into force lastmonth. Many financial institutions, worried about losing toptalent to international competitors, are restructuring pay as aresult.
Under the plan, the salaries of Bank of America front officemanaging directors based in the EU will be $500,000 and the bankis considering handing out extra cash payments to senior stafftwice a year which will count as fixed salary rather than abonus, the person said.
A Bank of America spokesperson declined to comment.
In November Barclays unveiled a plan to give seniorbankers additional monthly payments and last month an industrysource said HSBC is considering giving out shares toabout 1,000 top-ranking staff.
Barclays (BARC)
HSBC Holdings (HSBA)
