CHARLOTTE, N.C.–Bank of America said it plans to distribute more than $1 billion worth of restricted stock to virtually its entire workforce as it seeks to gain an upper hand in the war for talent.
In a memo first reported by CNN Business, Bank of America CEO Brian Moynihan said the company is for the first time opening up its stock awards program to lower-level employees who make up to $100,000 a year. In the past, those employees received a one-time cash bonus.
Each eligible employee will receive between 65 and 600 restricted stock units, corresponding with their compensation. Those units will vest over four years beginning in 2023, according to CNN Business.
“At a minimum, that means frontline workers like bank tellers will receive restricted shares that are valued, on paper, at about $2,900 based on Bank of America's current share price of $45,” the report explained. “At the upper end, higher-salary employees would get restricted shares valued at around $27,000.”
On Top of Compensation
Bank of America said the stock awards, which are on top of compensation received as part of the bank's annual review process, are going out to roughly 97% of its global employee base, but not to those who make above $500,000 a year, CNN Business reported.
Bank of America said that only a small portion of its workforce, mostly part-time employees and workers in certain overseas locations, will receive a cash award, totaling $750 apiece.
“In the past, Bank of America relied more on cash bonuses for lower-compensated employees. The decision to expand the pool of workers getting restricted stock that vests over time, is no coincidence,” CNN Business stated. “Bank of America is betting some employees won't want to quit if that means leaving thousands of dollars of stock on the table.”