Bank of America is awarding shares to employees after good performance in 2024, according to a Reuters memo
(Reuters) – Bank of America plans to grant stock to most of its global employees for the eighth time since 2017, following a strong performance by the second-largest U.S. lender in 2024, according to an internal memo seen by Reuters on Friday.
The stock awards, which will be issued in addition to year-end incentive awards, will be granted to employees earning total annual compensation of up to $500,000, covering approximately 97% of the lender’s global workforce.
BofA had 213,193 employees at the end of 2024, meaning stock awards will total just over $1 billion.
Earlier this week, BofA’s fourth-quarter earnings beat expectations, boosted by trading activity. The lender also predicted it would earn higher interest income for 2025.
For the full year 2024, the banking giant’s revenue exceeded $100 billion, driven by strong growth in fee income, and its profit amounted to $27.1 billion.
“Every source of revenue grew, and we saw better growth than deposits and loans in the industry,” BofA CEO Brian Moynihan said in an earnings release. “We believe this broad momentum positions 2025 very well.”
Wall Street executives also expressed confidence that the new US administration will maintain a business environment that is beneficial for banks. This comes as the country’s biggest lenders report a rise in profits, boosted by a surge in dealmaking and trading activity.
Bankers expect global business volume to exceed $4 trillion in 2025, the highest level in four years.
The broader operating environment was favorable for the banking industry, boosted by strong capital markets and analysts’ expectations that President-elect Donald Trump will implement a program of deregulation and lower taxes.
Earlier this month, Reuters reported, citing a source, that BofA’s bonus pool for investment bankers was likely to rise 10% year over year.
The bank’s shares rose 30.5% in 2024, outperforming the broader equity market.
Stock awards are typically granted to reward employees, retain top talent, and align their interests with the company’s long-term success.
