Bank of America employees to receive $1 billion worth of stock

Bank of America employees to receive $1 billion worth of stock

Bank of America employees are to receive $1 billion worth of restricted stock. The bank will be handing out its stock to virtually its entire workforce as it seeks to gain an upper hand in the war for talent. Brian Moynihan, Bank of America CEO said in a memo that for the first time the company is opening up its stock awards program to lower-level employees who make up to $100,000 a year. In the past, these employees were given a one-time cash bonus. 

Bank of America responded that each employee would get between 65 and 600 restricted stock units, depending on their compensation. Those units will vest over four years, starting in 2023. This means that at a minimum, frontline workers like bank tellers will receive restricted shares that value up to $2,900 on paper based on Bank of America's current share price which is $45. At the upper end, employees with higher salaries will receive restricted shares valued at around $27,000.

The bank said that the estimated value of the stock awards is "multiple times higher" than the cash bonuses the company had handed out in previous years. Last year, Bank of America distributed $750 cash bonuses to lower-paid employees. 

Source: CNN 

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