Bank of America to Award Stock to Employees for Eighth Time Since 2017
Bank of America (BAC) will issue stock awards to most of its global employees, marking the eighth such grant since 2017. This move follows a strong performance by the second-largest U.S. lender in 2024.
The stock awards will complement year-end incentive bonuses and cover about 97% of the workforce earning up to $500,000 annually. With 213,193 employees at the end of 2024, the total value of the stock awards is estimated at over $1 billion.
BAC's fourth-quarter profit exceeded analysts' expectations, driven by trading activity. The bank also predicted increased interest income in 2025. For the full year 2024, revenue surpassed $100 billion, fueled by fee income, while profit reached $27.1 billion.
"Every source of revenue increased, and we saw better than industry growth in deposits and loans," stated Brian Moynihan, BofA CEO. "We believe this broad momentum positions us strongly for 2025."
Wall Street CEOs remain optimistic about a business-friendly environment under the incoming U.S. administration. This optimism stems from a surge in profits driven by increased dealmaking and trading activities.
Investment bankers expect global deal volumes to exceed $4 trillion in 2025, the highest in four years. The favorable operating environment for the banking industry is supported by robust equity markets and expectations of deregulation and tax cuts under President-elect Donald Trump.
Earlier this month, BAC announced a potential 10% increase in its investment banking bonus pool for the previous year. In 2024, the bank's stock outperformed the broader equity markets, rising by 30.5%.
Stock awards serve to incentivize employees, retain top talent, and align their interests with the company's long-term success.