(Reuters) – Financial institution of America is about to award inventory to most of its world staff for the eighth time since 2017, following a sturdy efficiency by the second-largest U.S. lender in 2024, in keeping with an inside memo seen by Reuters on Friday.
The inventory awards, which shall be issued along with year-end incentive awards, can be granted to staff incomes an annual complete compensation of as much as $500,000, overlaying about 97% of the lender’s world workforce.
BofA had 213,193 employees on the finish of 2024, which suggests the inventory awards will quantity to barely over $1 billion.
Earlier this week, BofA’s fourth-quarter revenue beat expectations, boosted by buying and selling exercise. The lender additionally predicted it will earn greater curiosity revenue for 2025.
For the complete yr of 2024, the banking big’s income surpassed $100 billion, pushed by robust progress in payment revenue, and its revenue got here in at $27.1 billion.
“Each income elevated, and we noticed higher than trade progress in deposits and loans,” BofA CEO Brian Moynihan mentioned in an earnings launch. “We consider this broad momentum units up 2025 very nicely.”
Wall Avenue CEOs additionally voiced confidence that the incoming U.S. administration would keep a business-friendly surroundings useful to banks. This comes because the nation’s high lenders report a surge in earnings, pushed by an uptick in dealmaking and buying and selling actions.
Bankers anticipate world deal volumes to surpass $4 trillion in 2025, the very best stage in 4 years.
The broader working surroundings has been favorable for the banking trade, propelled by robust fairness markets and analysts’ expectations that President-elect Donald Trump will implement a deregulatory and lower-tax agenda.
Earlier this month, Reuters reported, citing a supply, that BofA’s bonus pool for funding bankers will most likely rise 10% for the earlier yr.
The financial institution’s inventory surged 30.5% in 2024, outperforming the broader fairness markets.
Inventory awards are sometimes issued to reward staff, retain high expertise, and align their pursuits with the corporate’s long-term success.