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

Bank of America CEO Brian Moynihan is awarding almost all of his 212,505 staff with a bonus for his or her work throughout the coronavirus pandemic.

Staffers within the U.S. who earn $100,000 or much less yearly will get a cash award of $750 late subsequent month, Moynihan stated Thursday in an organization memo.

Employees who make between $100,000 and $500,000 yearly will obtain 150 to 750 restricted stock items, the financial institution stated. These stock awards will likely be paid out over 4 years beginning in 2022, and their worth will likely be depending on the agency's stock value on the time of vesting, in accordance to a financial institution spokeswoman. Bank of America shares have been value about $31.50 apiece on Friday.

"Our company and teammates were called upon to address unprecedented challenges and headwinds in the broader environment, working in support of each other, our clients and the communities where we work and live," Moynihan stated within the memo.

"In appreciation for your outstanding efforts, the management team and I, with the support of our board of directors, have decided to recognize employees" with the awards, he stated.

Moynihan, who has led Bank of America since 2010, has in recent times taken steps to spend money on his worker base after a turbulent starting to his tenure. He took over within the rapid aftermath of the monetary disaster, when the financial institution toiled below the load of its disastrous acquisition of mortgage lender Countrywide Financial.

Bank of America started giving staff $1,000 annual cash awards in 2017, a program it continued till the pandemic struck. The second-biggest U.S. financial institution by belongings after rival JPMorgan Chase noticed revenue drop by 35% final yr as a result of of anticipated mortgage losses tied to the coronavirus.

Under Moynihan, the agency was additionally one of the primary massive banks to say it was shifting to a $20 minimal wage, a transfer it accomplished in April of 2020, a yr forward of schedule. The lender additionally stated it has spent $300 million to this point in reimbursing staff for child-care prices throughout the pandemic. News of the $750 cash bonuses was reported earlier by Bloomberg.

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

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