Bank of America has taken a major decision in postponing 2008 bonuses of some investment banking staff this year over three years. The bonus amounts to $50000, or even more, as per industry experts.

It is feared that the move might ignite tensions between its employees and officials of newly acquired Merrill Lynch. Merrill Lynch had disbursed about $3.6 billion in bonuses, days before its sale to Bank of America.

BofA employees normally receive their bonus in February. As a routine they were expecting to get the 2008 in February this year. But according to the new move they will have to wait until February 2010 before getting one-third of their 2008 bonus. A fraction of each bonus maybe less than 10 percent of the amount due will be paid in quarterly installments this year. The Charlotte, North Carolina-based bank will pay interest on the remainder at the London interbank offered rate, or Libor.

The bank is also cutting its workforce by up to 35,000 jobs in an effort to achieve $7 billion in annual cost savings after its acquisition of Merrill Lynch & Co. The U. S. Treasury had sanctioned $20 billion in January to as additional capital and $118 billion in asset guarantees to Bank of America to help absorb losses at Merrill Lynch.