Bank of America Boosts Employee Bonuses Despite Profit Drop, BNY Mellon Awards Shares Amid Layoffs
Bank of America has announced a significant stock bonus for its rank-and-file employees, while also facing a drop in profits and a pause in hiring. The bank awarded restricted-stock bonuses to 96% of its employees, excluding the highest earners, marking the sixth consecutive year for such awards. Meanwhile, BNY Mellon has awarded shares to its employees and plans layoffs in 2023.
Bank of America's total awards over six years have surpassed $4 billion, with this year's total reaching at least $700 million. This year's bonuses, worth at least $700 million, are part of the bank's ongoing commitment to rewarding its employees. Notably, the bank has expanded its bonus eligibility to include employees earning less than $100,000 per year, who previously received cash bonuses.
The bank's profit dropped by 14% in 2022 compared to the previous year. Despite this, Bank of America increased its minimum wage to $22 per hour in 2022, with plans to reach $25 per hour by 2025. The bank has no plans for widespread job cuts but has paused hiring for non-critical positions until midyear or economic improvement.
In contrast, BNY Mellon has awarded 10 shares to each eligible rank-and-file employee, worth about $460 in total. However, the bank is also planning to lay off about 1,500 workers in 2023.
Bank of America's stock bonuses, despite the profit drop, reflect the bank's commitment to rewarding its employees. The expansion of bonus eligibility and minimum wage increase show the bank's focus on employee satisfaction. Meanwhile, BNY Mellon's share awards to employees come amidst plans for significant job cuts in 2023.
