Bank of America is rewarding almost all of its employees with a pool of $1 billion in restricted stock, further boosting compensation as financial firms compete to attract and retain workers.
The incentive, to come on top of regular compensation, goes to staff who earn as much as $500,000 a year, according to a memo from Chief Executive Officer Brian Moynihan. About 97% of the global workforce is eligible. This is the fifth year the firm has paid the compensation awards, which now total $3.3 billion, spokesman John Yiannacopoulos said.
“Our Sharing Success awards are one of many ways we invest in our teammates,” Moynihan wrote.
Each eligible employee will receive between 65 and 600 restricted stock units, based on compensation, according to the memo. Employees will be awarded the full value in March, and shares will vest in equal payments over four years starting in 2023. CNN previously reported the stock payment.
The company will be “very competitive” on compensation as banks compete for the best talent, Chief Financial Officer Alastair Borthwick said on a call to discuss fourth quarter results last week.
The Charlotte, North Carolina-based bank’s stock rose about 1.8% to $45.35 at 3:52 p.m. In New York. It gained 47% in 2021. A representative for Bank of America confirmed the contents of the memo.
Part-time staff in specific international locations with total compensation up to a certain threshold will receive a cash award of $750 or the local country equivalent, the memo shows.
Employees with total annual compensation up to $100,000 will receive the awards in stock for the first time. In the past, those workers received a one-time cash bonus.
The reward follows Bank of America’s record $32 billion in net income for 2021. The firm raised its minimum wage to $21 in 2021 on the path to $25 an hour by 2025.
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