- Bank of America is introducing a new bonus program to retain employees during the Great Reshuffle.
- The bank has set aside $1 billion worth of stock to offer larger bonuses that vest over four years.
- Eligible employees will receive between 65 and 600 shares, depending on their salary level.
In a bid to attract and retain talent during the Great Reshuffle, Bank of America is dramatically expanding its employee stock awards program to cover roughly 97% of its global workforce.
The bank set aside $1 billion worth of stock to distribute to eligible employees, many of whom formerly received cash bonuses, according to an internal memo from CEO Brian Moynihan.
"For this year, the estimated value of these awards is multiple times higher than the prior cash awards," Moynihan said.
Actual bonuses will be pegged to salaries, but are expected to range from 65 to 600 shares — worth an estimated $2,900 to $27,000, based on a share price of $45. Unlike the cash bonuses, the shares will take four years to fully vest.
Since 2017, the bank has given a total of $3.3 billion in stock awards to employees, but this is the first year that employees earning less than $100,000 have been able to participate.
"That level of distribution is incredibly high," Brian Kropp, head of Gartner's human resources practice, told CNN Business, which first reported on the bonuses. "The fact they are pushing out that kind of award across the workforce is rare."
"Restricted stock creates a long-term retention hook rather than just a cash bonus," Kropp added.
The announcement follows Bank of America reporting record profits of $32 billion in 2021, while the share price climbed 47% for the year.
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