In a memo shared exclusively with CNN, Bank of America CEO Brian Moynihan said on Tuesday that the company is opening for the first time its share-sharing program for lower-level employees, who earn up to $ 100,000 a year. Previously, employees received a one-time cash bonus.
At a minimum, this means that front-line employees such as bank cashiers will receive limited shares, which on paper are valued at around $ 2,900 based on the Bank of America’s current share price of $ 45.
In the upper end, higher paid employees would get limited shares worth about $ 27,000.
Bank of America said stock rewards – which are on top of the compensation received as part of the bank’s annual audit process – amount to about 97% of its global employee base, but not to those earning more than $ 500,000 a year.
“That level of distribution is incredibly high,” said Brian Kropp, head of HR research at Gartner. “It’s rare that they push those kinds of prices out across the workforce.”
Bank of America said that only a small portion of its workforce, mostly part-time employees and workers in certain overseas locations, would receive a cash reward of a total of $ 750 apiece.
In the past, Bank of America relied more on cash bonuses for lower-paid employees. The decision to expand the pool of workers who receive limited equipment earned over time is no coincidence. Bank of America is betting that some employees do not want to stop if that means they leave thousands of dollars of stock on the table.
“We are in the midst of this Great Resignation,” Kropp said. “Limited stock holdings create a long-term holding hook rather than just a cash bonus.”