Bank of America (BofA) will grant stock awards to the majority of its global workforce for the eighth time since 2017, a move stemming from the bank’s robust performance in 2024. According to an internal memo obtained, the stock awards will be provided in addition to year-end incentive payouts.
Employees earning up to $500,000 annually—about 97% of the bank’s global staff—will be eligible for the stock awards, which are expected to total slightly more than $1 billion. With 213,193 employees worldwide by the close of 2024, the generous stock issuance reflects BofA’s strong financial results.
The bank reported a fourth-quarter profit that exceeded analyst expectations, driven by an uptick in trading activity. Looking ahead, BofA also forecasted an increase in interest income for 2025.
For the full year, the banking giant posted revenues surpassing $100 billion, bolstered by impressive growth in fee income. Its profit for the year reached $27.1 billion, marking a significant achievement. “Every source of revenue increased, and we saw better than industry growth in deposits and loans,” said CEO Brian Moynihan in an earnings release. “We believe this broad momentum sets up 2025 very well.”
The positive outlook is shared by Wall Street’s top executives, who express confidence that the incoming U.S. administration will continue to foster a business-friendly climate conducive to the banking sector. This sentiment comes as major U.S. lenders report a surge in profits, spurred by increased dealmaking and trading activity.
Bankers are also optimistic that global deal volumes will exceed $4 trillion in 2025, the highest level in four years. The favorable operating environment, supported by strong equity markets and expectations of deregulatory policies under President-elect Donald Trump, further strengthens the outlook for banks.
In addition to stock rewards, BofA’s bonus pool for investment bankers is expected to rise by 10% for the previous year.
BofA’s stock surged by 30.5% in 2024, outpacing the broader equity markets. The issuance of stock awards serves to recognize employee contributions, retain top talent, and align staff interests with the bank’s long-term success.
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