Bank of America
on late Wednesday strongly denied a report that it is mulling major changes to leadership and compensation for its
financial advisor unit.
BofA spokeswoman Selena Morris strongly denied a report on the Web site
that suggested Dan Sontag, head of Merrill's "Thundering Herd" of financial advisors was about to be replaced by BofA insider Keith Banks. The report also said BofA was considering changing its pay system to compensate advisors with smaller salaries and larger bonuses that could be subject to government restrictions.
The two rumors were "roiling the financial advisers,"
says. The report also notes that "last minute maneuvers" could keep Sontag atop the financial advisor unit and abort the expected changes to the compensation plans.
"It's completely without merit," Morris says. Sontag could not be reached for comment.
Merrill's "Thundering Herd" was one of the main attractions for Bank of America CEO Ken Lewis, who struck a controversial deal to acquire Merrill last year in the darkest days of the financial crisis. But the head of that business, Robert McCann, was a surprise early departure in the first days after the deal closed at the start of the year.