Business

Bank of America CEO blocks broker paycut plan

Brian­ Moynihan is CEO of Bank of America.

Brian­ Moynihan is CEO of Bank of America.

NEW YORK — Bank of America Corp. chief executive Brian­ Moynihan has blocked a proposal to cut the main component of most brokers’ pay for 2013, said a person with knowledge of the matter.

The plan would have reduced the so-called grid payout for Merrill Lynch financial advisers by two percentage points, the person said, requesting anonymity.

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The changes, which would have affected advisers generating less than $1 million in commissions, were seen as a way to cushion the costs of new bonuses, the person said. The bankproceeded with introducing the new awards for advisers who steer clients to use more of the bank’s products.

Moynihan decided to overrule John Thiel, head of Merrill Lynch. Moynihan was concerned the changes would damage the ability to retain employees and lure other firms’ brokers, the person said.

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