Lewis is especially anxious to attack Merrill's pay scales. "Merrill was paying typical Wall Street pay," he says. "Their staff people were making a lot more than our staff people. That won't last. We intend to pay market instead."
So BofA’s us-vs.-them integration strategy is alive and well. Nice morale builder! I think I can hear Merrillites updating their resumes now. . . . The key to the success of BofA’s Merrill deal, though, will be broker retention. And the key to that will hinge on the financial packages BofA offers. Stinting not a good idea!
I’m surprised there’s been no word yet: the best strategy is to come up with a fat deal and get it in front of brokers fast, before they get into the habit of taking calls from headhunters. Very suspicious. If Lewis thinks he’ll make his Merrill acquisition work by lowballing the Thundering Herd, he could end up buying a lot less than he bargained for. . . .