Bank of America Corp (NYSE:BAC) has announced that it will give its employees earning less than $100,000 per year a pandemic bonus of $750. On the other hand, those earning more will receive a stock grant or around 150 to 750 units of unrestricted stock.
Staff to receive bonuses on stock grants
However, the bank has not confirmed the eligibility criteria it will employ but has indicated that around 97% of its employees will get a stock award or bonus. A memo from the company’s CEO, Brian Moynihan, indicated that during the pandemic the company and its staff were involved in addressing unprecedented challenges. Moynihan said that the move is part of the company’s efforts in investing in safety, benefits, health, and resources to support staff during the pandemic crisis.
In 2017, 2018, and 2019, the North Carolina-based company announced $1,000 payouts for employees after earnings surged in a buoyant economy. Last year the COVID-19 pandemic upended the environment shuttering businesses and putting millions of people out of work. Interestingly, US banking giants weathered the storm and won approval from the Fed to commence share buybacks.
Bank of America dropped its income by 35% in 2020
Although, Bank of America saw its income slump around 35% last year it still managed to generate $18 billion. In Q4 2020, the company topped analysts’ estimates despite revenue suffering low-interest rates that impacted the consumer banking operations. Net income in the fourth quarter was down 28%.
In the wake of the pandemic, the company introduced some benefits for its employees with 85% of the workforce working from home. The bank also spent around $300 million last year to offer 3 million days of adult and child care and $600 million in other measures such as personal protective equipment, increased cleaning, meals, transportation as well as overtime, and supplemental pay.
Several other companies have also announced staff bonuses or wage increase for their employees that were working during the pandemic. Amid the pandemic, top executives of some companies also forfeited their salaries.