BofA will have 213,193 employees at the end of 2024, which means stock compensation will be just over $1 billion.Bank of America will cut most of its global workforce for the eighth time since 2017 following the No. 2 U.S. financial institution’s strong performance in 2024, according to an internal memo seen by Reuters on Friday. The company plans to grant shares, an internal memo seen by Reuters revealed.
The stock awards, issued in addition to year-end incentive awards, will be given to employees with annual total compensation of up to $500,000, which will cover approximately 97% of the financial institution’s global workforce.
At the end of 2024, BofA will have 213,193 employees and just over $1 billion in stock compensation.
Earlier this week, BofA’s fourth-quarter profit beat expectations, supported by trading activity. The lender also predicted higher interest income in 2025.
For the full year of 2024, the banking giant’s revenue exceeded $100 billion and its profit was $27.1 billion, driven by strong growth in fee income.
“All revenue streams increased, with deposit and loan growth outpacing the industry,” BofA CEO Brian Moynihan said in a statement. “We believe this broad momentum will position us well for 2025.”
Wall Street CEOs also expressed confidence that the next U.S. administration will maintain a business-friendly environment that is conducive to banks. This comes as major financial institutions in the country have reported a sharp increase in profits due to increased trading and trading activity.
Bankers predict that global transaction volume will exceed $4 trillion in 2025, the highest level in four years.
The broader operating environment is favorable for the banking industry, with strong stock markets and analysts’ expectations that President-elect Donald Trump will implement deregulation and tax cuts.
Reuters reported earlier this month, citing people familiar with the matter, that BofA’s bonuses for investment bankers will likely increase by 10% from a year ago.
The bank’s stock rose 30.5% in 2024, outperforming the broader stock market.
Equity awards are typically issued to reward employees, retain top talent, and align employees’ interests with the long-term success of the company. (Reporting by Manya Saini in Bengaluru and Saeed Azhar in New York; Editing by Mohamed Safi Shamsi and Diane Craft)
