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 US Financial Services Conference on December 4, 2018.
Michael Newberg | CNBC
Brian Moynihan, CEO of Bank of America, awards nearly all of its 212,505 employees a bonus for their work during the coronavirus pandemic.
Employees in the United States who earn $ 100,000 or less annually will receive a cash award of $ 750 late next month, Moynihan said in a company memo Thursday.
Employees who earn between $ 100,000 and $ 500,000 annually will receive 150 to 750 restricted stock units, the bank said. These share awards will be paid out over a four-year period starting in 2022. According to a bank spokeswoman, their value depends on the company’s share price at the time of exercise. Bank of America’s shares were valued at around $ 31.50 each on Friday.
“Our company and our teammates have been challenged to address unprecedented challenges and headwinds in a broader environment and to support one another, our customers and the communities in which we work and live,” Moynihan said in the memo.
“In recognition of your outstanding efforts, the management team and I, with the support of our board of directors, decided to recognize employees,” he said.
Moynihan, who has headed Bank of America since 2010, has taken steps to invest in its workforce in recent years after a tumultuous start to his tenure. He took over immediately after the financial crisis, when the bank worked under the weight of its disastrous acquisition of mortgage lender Countrywide Financial.
Bank of America began lending employees $ 1,000 annually in cash in 2017. This program continued until the pandemic broke out. The second largest U.S. bank by assets after rival JPMorgan Chase saw profits fall 35% last year due to expected credit losses related to the coronavirus.
Under Moynihan, the company was also one of the first major banks to say it was moving to a $ 20 minimum wage, a postponement that was completed in April 2020, a year ahead of schedule. The lender also said it has so far spent $ 300 million on childcare reimbursement during the pandemic. Bloomberg previously reported on the cash rewards of $ 750.
“This step is the next step our company is taking to invest significantly in health, safety, benefits and other resources to assist you in this global health and humanitarian crisis,” said Moynihan.