Bank of America will give the vast majority of its employees a one-time bonus for the third year in a row, CEO Brian Moynihan said in an internal memo Tuesday, citing the company’s strong performance.
According to the memo, the Charlotte-based bank will give employees who earn $100,000 or less per year a $1,000 cash bonus in December. Workers who make between $100,000 and $350,000 a year will receive between 200 and 500 restricted shares in the first quarter of next year, which pay out over four years.
Combined, the bonuses cover about 95% of the bank’s approximately 208,000 employees, the bank said.
The financial institution employs about 16,000 people in the Charlotte region.
The announcement comes after the bank reported a profit of $5.8 billion in the third quarter, surpassing analysts’ expectations despite falling from the year before due to a one-time charge. The bank had a record first half of the year for profit.
In the past, Moynihan cited the tax cuts Congress passed in 2017 as part of the reason the bank gave the bonus to its employees.
This time, Moynihan said in the memo that the bank’s “continued strong performance” allowed it to give employees the benefit again.
The bonuses total about $1.6 billion over the three years, the memo said.
The company also raised its minimum wage in May from $15 an hour to $17. The minimum pay will continue to rise until hitting $20 an hour in 2021, the bank has said.