I'm not one of those employees who get BAC shares as part of my compensation but I do know those people received shares around bonus time in February. I just found out that a lot of those same people also received shares in March. These BAC shares were awarded in addition to the shares that were received in February. Anybody who received stock in February and then again in March want to chime in? Just curious to see if that's normal or were the additional shares in March awarded based on the bank's record breaking year?
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I'm the original poster.
The first reply to this thread understood where I was going and answered what I was curious about. It looks like some employees recieve extra shares based on the company's success.
I'm not talking about the restricted units that you can't claim for fours years. Not interested in that and I already know the deal involving those units.
The specific example that made me ask the question was I'm friendly with a manager from another team and she told me she received BAC shares in February as part of her compensation. She then told me she immediately sold those shares. She didn't wait four years...she immediately sold them on the open market. Then in March, she mentioned that she received more shares. Not sure if she sold those shares yet.
My original question was about the shares she received in March...I understand now. She must have received the additional shares in March due to the company's very successful year.
The stock is paid out in full upon a layoff. Read the terms.
At original poster:
You want a grand in cash over four grand in stock over four years? lol. You know that all the rich people get paid in stock, right? There's a reason they are rich. Change your mindset, learn a bit. Cash is worthless, always has been. I get paid (mostly) in stock, my net worth is in stock and real estate, I have like 20 in cash to my name max at any time.
@2ddt+1fI3goo1 Fake news
Looks like the admins deleted my 1st post because I truthfully stated that Donald Trump's tax cuts were responsible for these extra bonuses associates started receiving 3 years ago. Many large companies gave bonuses when the tax cuts hit. BofA has kept it going each year since.
In prior years stock has been granted in Feb and other years it is March. Those that have received these grants in prior years will be receiving the 25% portion based on when it was granted.
This is yet another devious scam used by management to avoid year-end cash bonus payouts under the guise of "spreading the wealth" or "employee retention". Many job roles at the bank are super unstable, as job roles get eliminated constantly. There is constant turmoil and change, oftentimes for no legitimate business reason. Do you really think your job function will last 4 years?
@vjt+1fI3goo1...I'm glad the crybaby is gone.
@nrb+1fI3goo1 - Point 2 should read ...comp "up to" $100k)
There are several different compensation programs depending on your level and role in the company.
The two you are asking about are:
- Restricted stock units (RSUs) that vest over 4 years for bonus-eligible employees. Some years the bonus is a) all cash (if it provides more favorable accounting treatment for BAC balance sheet), b) combination cash/RSUs, or c) just RSUs. Purpose is to A) give senior employees some "skin in the game" for overall company performance. (if company does better, then share price should go up, meaning their shares are worth more. Doesn't always work out that way though), and B) serve as a kind of mini golden handcuff as you have to stay with the company over the vesting period to actuall receive the shares. If you leave the company, you forfeit the comp. (These shares don't count for much, so this does not really work.)
- Share Success: Reward for all employees when company achieves certain financial targets. Kind of a "profit sharing for everyone". In the past, it was All Cash for employees with comp $100k. This is the first year they did RSUs for all, which has created confusion for those unfamiliar and might prefer the cash. Am guessing, it was cheaper for the company to award shares (since people leave and the company basically gets those shares back), and a desire to introduce the retention aspect to everyone.
By the way, none of this is guaranteed. They do not have to award any of this. In "down" years, there is no bonus.
For those bonus eligible who receives shares also received shares from the company success. It’s been happening for years. So if your working hard and get to bonus out then yay!