On January 17, Bank of America announced plans to grant stock awards to the majority of its global employees for the eighth time since 2017. This is in recognition of the bank's strong performance in 2024, as revealed in an internal memo disclosed to Reuters on Friday.
The stock awards, in addition to year-end incentives, will be distributed to employees with annual total compensation up to $500,000, covering around 97% of the bank's worldwide workforce.
With 213,193 employees by the end of 2024, the total value of the stock awards is estimated at slightly over $1 billion.
Bank of America reported a successful fourth quarter, driven by robust trading activity, and foresees an increase in interest income for 2025. In 2024, the bank's revenue exceeded $100 billion, with significant fee income growth, resulting in a profit of $27.1 billion.
CEO Brian Moynihan stated, "Every revenue stream showed growth, outpacing the industry in deposits and loans. We are optimistic about setting up well for 2025."
Wall Street CEOs anticipate a business-friendly stance by the incoming U.S. administration, benefiting banks. Profit surges among top lenders are attributed to increased dealmaking and trading activities.
Global deal volumes are expected to rise in 2025 to the highest level in four years. A favorable operating environment for the banking sector is fueled by strong equity markets and the anticipated deregulatory and lower tax policies under the new president.
Reuters previously reported, citing a source, that BofA's bonus pool for investment bankers is likely to increase by 10% for the past year.
In 2024, Bank of America's stock soared by 30.5%, outperforming the broader equity markets.
Stock awards serve as a means to reward, retain talent, and align employees’ interests with the company’s long-term prosperity.