Why Meredith Whitney Couldn’t Save Bank of America Corp (BAC) Today

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The move comes amid a wave of similar announcements on Wall Street. Earlier this year, Morgan Stanley (NYSE:MS) said that it was capping cash bonuses for 2011 at $125,000 and that its top executives wouldn’t receive any cash as a part of their bonuses. And according to the New York Times, overall compensation on Wall Street is expected to drop this year by at least 30%.

Suffice it to say, changing the compensation structure involves a delicate dance for B of A. On the one hand, it’s ardently trying to lower expenses under its so-called Project New BAC. But on the other hand, it needs to keep its employees sufficiently content so they’ll continue producing for the nation’s second largest lender.

The article Why Meredith Whitney Couldn’t Save B of A Today originally appeared on Fool.com and is written by John Maxfield.

Fool contributor John Maxfield owns shares of Bank of America. The Motley Fool owns shares of Bank of America and Citigroup.

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