Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) both announced their 2009 compensation levels on Wednesday as the latest round of closely-watch Wall Street Firms disclosed their payouts to employees.
Morgan Stanley said that it has earmarked $14.4 billion for compensation, most of which will be given out in the form of year-end bonuses. This represents a 31% increase from the year previously as Morgan Stanley has added thousands of new brokers to its payroll because of it joint venture with Citigroup under Smith Barney. Morgan Stanley did report a slightly lower average compensation on a per-employee basis.
Meanwhile, Bank of America, said that its compensation total for 2009 would reach $31.5 billion, up from $18.4 billion in 2008 as it absorbed traders and bankers from its acquisition of Merrill Lynch in the beginning of the year. The 2009 figure also reflects the first full year that Countrywide employees have been on Bank of America’s payroll. The average pay increase on a per-employee basis went up by 45% to $111,000.
These numbers drew a new wave of criticism on Washington as lawmakers are quick to address anger from a new wave of populism ahead of the November mid-term elections. Representative Peter Welch (D-VT) recently introduced a bill to tax Wall Street Bonuses and us the fund to lend to small businesses. According to a statement from Welch, there has been significant interest in his new legislation.
Both Morgan Stanley and Bank of America defended the compensation levels, noting that a larger portion of their pay was being handed out through deferred compensation.
