Home / NEWS / Finance / Bank of America is giving $750 cash bonuses to lower-paid employees, restricted stock to others

Bank of America is giving $750 cash bonuses to lower-paid employees, restricted stock to others

Brian Moynihan, CEO of Bank of America, at the Goldman Sachs U.S. Monetary Services Conference on December 4, 2018.

Michael Newberg | CNBC

Bank of America CEO Brian Moynihan is awarding nearly all of his 212,505 workers with a bonus for their work during the coronavirus pandemic.

Staffers in the U.S. who earn $100,000 or less annually on get a cash award of $750 late next month, Moynihan said Thursday in a company memo.

Employees who intimate between $100,000 and $500,000 annually will receive 150 to 750 restricted stock units, the bank predicted. These stock awards will be paid out over four years starting in 2022, and their value wish be dependent on the firm’s stock price at the time of vesting, according to a bank spokeswoman. Bank of America shares were quality about $31.50 apiece on Friday.

“Our company and teammates were called upon to address unprecedented challenges and headwinds in the broader circumstances, working in support of each other, our clients and the communities where we work and live,” Moynihan said in the memo.

“In realization for your outstanding efforts, the management team and I, with the support of our board of directors, have decided to recognize wage-earners” with the awards, he said.

Moynihan, who has led Bank of America since 2010, has in recent years taken steps to instal in his employee base after a turbulent beginning to his tenure. He took over in the immediate aftermath of the financial crisis, when the bank toiled call of the weight of its disastrous acquisition of mortgage lender Countrywide Financial.

Bank of America began giving employees $1,000 annual currency awards in 2017, a program it continued until the pandemic struck. The second-biggest U.S. bank by assets after rival JPMorgan Run after saw profit drop by 35% last year because of expected loan losses tied to the coronavirus.

Under Moynihan, the resolved was also one of the first big banks to say it was shifting to a $20 minimum wage, a move it completed in April of 2020, a year forwards of schedule. The lender also said it has spent $300 million so far in reimbursing employees for child-care costs during the pandemic. Low-down of the $750 cash bonuses was reported earlier by Bloomberg.

“This move is the next step our company is taking to significantly establish in health, safety, benefits and other resources to support you during this global health and humanitarian crisis,” Moynihan said.

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