Move follows an investigation found young bankers are told to conceal their working hours
Bank of America has introduced new measures to address concerns about overwork among junior bankers, amid reports that managers have pressured staff to underreport their working hours.
On Monday, the bank directed junior employees to report any instances where they were instructed to conceal their working hours. This directive follows an investigation by the Wall Street Journal, which uncovered that some junior bankers were being told to misrepresent their hours to avoid triggering policies that would grant them additional time off.
According to a Fortune report, the issue has raised significant questions about corporate culture at the $300 billion corporation. The investigation revealed that junior bankers frequently worked beyond the company’s 100-hour workweek limit, often being instructed to report fewer hours than they actually worked. This practice was reportedly common despite existing regulations intended to prevent such overwork, which include at least one weekend day off and require approval from human resources for hours exceeding the set limits.
One former employee recounted being kept at the office until 5 a.m. and asked to underreport their hours. Another described being instructed to report fewer hours despite working through multiple all-nighters each week.
High compensation an equal trade-off?
The demanding nature of banking, known for long hours and high salaries, is often viewed as a trade-off for substantial financial rewards. Entry-level salaries at banks like Bank of America can exceed $100,000 annually, with bonuses potentially adding significantly to total compensation. A recent report by compensation consultancy Johnson Associates indicated that bonuses for bankers are expected to rise by up to 35% this year.
Bank of America’s 100-hour workweek cap was instituted in 2014 following the death of 21-year-old intern Moritz Erhardt in the London office. Erhardt died of an epileptic seizure after working three consecutive all-nighters. The cap aimed to prevent such tragedies by regulating work hours more strictly.
The issue of overwork gained renewed attention after the recent death of Bank of America employee Leo Lukenas III. Lukenas, a former Green Beret, died in May after working 100-hour weeks on a high-stakes deal. His death has highlighted ongoing concerns about the extreme demands placed on junior staff.
As the industry faces scrutiny, there is speculation that advancements in artificial intelligence could reduce the need for junior bankers to perform the long hours of repetitive tasks currently required. These new productivity tools may help alleviate some of the burdens that have historically characterized entry-level banking roles, Fortune noted.
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