Former Merrill Lynch advisers who were fired after Bank of America merged with the brokerage in 2008 won back some of the deferred compensation on which they had missed out, according to a settlement filed this week in a North Carolina district court.
Reuters reports that Bank of America agreed to pay $12.8m to settle claims made by more than 270 former employees that the bank failed to follow proper procedures after terminating them. The ex-employees held that the procedures would have allowed them to argue they deserved to leave the firm with some of their deferred compensation that was not yet paid out.
Many Wall Street brokerages offer bonuses and other compensation in the form of deferred cash, seeing it as a way to delay immediate payouts and to lock in employees who might be tempted to jump to rival firms.
A Bank of America spokesman declined to comment. As part of the settlement, the bank and Merrill Lynch did not admit or concede to any of the allegations made by the former advisers.
To access the complete Reuters article hit the link below:
Have something to tell us about this article?