According to an internal letter reviewed on Friday, Bank of America plans to award stock to most of its staff worldwide for the eighth time since 2017. This comes after the second-largest U.S. lender in 2024 strong performance. in 2024
Employees earning a total annual salary of up to $500,000 would be eligible to receive the stock awards, which will be distributed in addition to year-end incentive awards. This would cover around 97% of the lender’s workforce worldwide.
Bank of America CEO Brian Moynihan Confident About 2025 Outlook
At the end of 2024, Bank of America had 213,193 employees, which indicates that the stock awards will amount to little more than one billion dollars.
At the beginning of this week, Bank of America’s fourth-quarter profit exceeded expectations, which was helped by trading activity. Additionally, the lender forecasted it would generate more interest income in 2025.
The banking giant’s revenue for the entire year of 2024 reached $100 billion, led by considerable growth in fee income, and its profit came in at $27.1 billion. This demonstrates the company’s success in business.
According to an earnings release statement by Brian Moynihan, Bank of America’s CEO, “Every source of revenue increased, and we saw better-than-industry growth in deposits and loans.” “We believe this broad momentum sets up 2025 very well.”
Wall Street chief executive officers have expressed their confidence that the incoming administration of the United States will continue to foster an atmosphere favourable to business and financial institutions.
This comes when the country’s leading lenders have reported an increase in earnings, which can be attributed to increased commerce and business transactions.
Bankers anticipate global transactions will top $4 trillion in 2025, marking the greatest level in the past four years.
The overall operating climate has been positive for the banking industry, spurred by robust equity markets and analysts’ predictions that President-elect Donald Trump will pursue a deregulatory and lower-tax agenda within his administration.
According to a story published by Reuters earlier this month, the bonus pool Bank of America provides to investment bankers is expected to increase by approximately ten per cent for the previous year.
During the year 2024, the bank’s shares had a spike of 30.5%, exceeding the overall equities markets.
Employees commonly receive stock awards to retain top talent, align their interests with the company’s long-term success, and acknowledge their contributions.
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