Strong deal activity lifts compensation outlook
:contentReference[oaicite:0]{index=0} plans to increase bonus payouts for its top-performing investment bankers and expand the overall bonus pool for the division after a strong rebound in dealmaking activity this year, according to sources familiar with the matter.
Leading dealmakers could see bonus increases of around 20%, while compensation for mid-level performers is expected to remain broadly flat. Discussions around year-end compensation are still ongoing and figures may change before final decisions are communicated, typically in January.
Improving rankings and major mandates
Last year, the bank lifted average bonuses by roughly 10%, reflecting a gradual recovery across Wall Street. In 2025, Bank of America ranked third globally in investment banking revenue, holding its position from the previous year, according to preliminary data from Dealogic.
Only :contentReference[oaicite:1]{index=1} and :contentReference[oaicite:2]{index=2} ranked ahead of Bank of America in global investment banking revenue. The lender placed fourth in the global mergers and acquisitions league table, benefiting from its advisory role on several large transactions.
Strategic focus on large and mid-market deals
One of the standout transactions was Bank of America’s advisory role on the $85 billion merger between Norfolk Southern and Union Pacific, a landmark deal in the U.S. rail sector that generated approximately $130 million in fees, according to regulatory filings.
Executives have outlined plans to increase the bank’s share of global investment banking fees by 50 to 100 basis points over the next three to five years. The strategy includes retaining top M&A talent, selectively hiring in key coverage areas, expanding participation in mega-deals above $5 billion, and strengthening its presence in middle-market transactions.
Broader Wall Street bonus momentum
Chief Executive Brian Moynihan recently told investors that investment banking fees are expected to remain broadly flat in the fourth quarter, while revenues from the markets business could rise by a high single-digit percentage to around 10%.
Across Wall Street, bonuses for traders and investment bankers are projected to rise for a second consecutive year, supported by higher deal volumes and increased market volatility, according to compensation consultancy Johnson Associates.
