Bank of America is taking steps to address the issue of junior banker burnout by changing the way it oversees their workloads. The bank is now having senior bankers, those who hold a title of director or above, monitor the nature and volume of assignments given to lower-level staff. This move comes after a series of tragedies involving young people in the investment banking sector.
In January, a 28-year-old investment banking associate at Jefferies passed away from a suspected drug overdose after reportedly working as much as 100 hours a week. Similarly, a Bank of America junior banker died from a blood clot after working 100-plus hour weeks. Bank of America had previously instituted policies in 2014 to limit the hours of junior bankers, but they were often pressured into misreporting their workloads.
Senior oversight for junior staff
To better manage and reduce the workloads of young bankers, the bank has relied on a chief resource officer (CRO) model. The bank is now modifying this model by having senior bankers in permanent, full-time roles across various sectors and regions supervise the development of junior bankers.
These senior execs are no longer involved in deal-making but are chosen for their strong leadership qualities and experience in managing teams. “We want all of our junior bankers to have the best experience possible, learning from the teammates they work with and further benefiting from the career growth and development this role brings,” a Bank of America spokesperson said in a statement. Bank of America Securities, the investment banking division of Bank of America, employs thousands of bankers, though it’s unclear how many of them are junior bankers.
Young executives typically spend several years as junior bankers before moving up to vice president. Recently, Bank of America also trimmed about 150 junior investment banking roles, with the majority of those affected being reassigned to new positions outside of investment banking, including roles in financial analysis or strategic planning.
