Bank of America is rewarding many of its employees with $1,000 cash bonuses, after the company posted record profits in the third quarter and continues to benefit from last year’s federal tax cuts, according to an internal memo.
The Charlotte-based company said in the memo this week employees making $100,000 or less in total annual compensation will be paid the awards next month. The bank, which employs approximately 205,000 people globally, is giving the payouts as it recognizes “those whose commitment and hard work drives our success throughout the year.”
Separately, workers who make more than $100,000 to $350,000 a year will receive between 200 to 500 restricted shares per employee during the first quarter of next year, the memo from CEO Brian Moynihan said.
Combined, the cash or stock will go to about 95 percent of the company’s employees, according to the memo, which does not break out how many workers are getting cash versus stock.
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The announcement comes after the bank reported $7.2 billion in profit in the third quarter, surpassing the previous record of $6.9 billion from the first quarter of this year.
“We are sharing success because of the results we have achieved from our continued focus on living our values, delivering our purpose and driving responsible growth through our eight lines of business,” Moynihan said in the memo. “In the third quarter, you delivered responsible growth with our highest earnings ever for a single quarter, and the highest earnings ever for four quarters in a row.”
Moynihan said the awards also reflect the continuing benefits the bank is receiving from the tax cuts passed by Congress last December.
Those cuts slashed what corporations pay on their profits from 35 percent to 21 percent. In the third quarter, Bank of America said its income tax expense fell by $360 million, or more than 16 percent, from the same quarter last year.
It’s the latest round of bonuses Bank of America has awarded since the tax cuts. After the cuts were passed, the bank in December announced $1,000 bonuses to roughly 145,000 U.S.-based employees, The Charlotte Observer reported at the time.
Other companies have also announced passing the tax cuts on to their employees. That list includes San Francisco-based Wells Fargo, Texas-based American Airlines and Mooresville-based Lowe’s, which are among the Charlotte area’s largest employers.
Bank of America employs about 15,000 people in the metro area.