Bank of America to award shares worth $1 billion to all employees except senior management
In an announcement that will make several Bank of America employees happy, its CEO said that it will award $1 billion in stock to non-executive employees through its Sharing Success Program. This will equate to around a whopping 19 million shares of the company’s stock. Employees eligible for this program constitute 96% of BofA’s workforce. As far as the CEO is concerned, he believes that this will make employees feel like part owners of the company they work for.
CEO Brian Moynihan made the announcement at the World Economic Forum in Davos, Switzerland, as per a report in Fox News. 2026 will mark the ninth year of the program, which was started in 2017 and has seen total payouts amounting to nearly $7 billion. The massive price tag for 2026 comes as a result of strong growth and financial results, as per the company. Moynihan also credited US President Donald Trump.
He said that the administration’s ‘big, beautiful bill’ helped companies believe that corporate tax rates would remain stable, which gave them the confidence to make long-term investment decisions. "The big, beautiful bill, coming effective preserves our knowledge that the tax rate is not going to change. The tax rate has been pretty consistent, and each year we've been able to make plenty of money for the shareholders," he said.
"Having certainty of the tax bill is very critical for businesses to make long-term plans. Very few businesses make plans and complete them within a year. It takes time to do all of this," he added. These stock returns are provided to 96% of the bank’s employees over and above their regular compensation and incentives. In an economy that is seeing millions struggle with affordability, this must feel like welcome news for those eligible for the program.
"We are proud to continue investing in our people and reinforcing a culture of shared growth and achievement," Moynihan added. He also said that the bank was working to implement Trump accounts for its employees and clients. The BofA CEO has not shied away from speaking about American politics in public. In December, he came out to say that it was crucial for the Federal Reserve to be an independent body.
President Trump has done his utmost to influence the Fed to lower rates and has even launched a tirade of verbal assault on Chair Jerome Powell. Trump will choose the next Chair of the body when Powell’s term expires in May, but Moynihan believes that no one should influence the Fed. “The markets will punish people if we don't have an independent Fed. And everybody knows that,” he said at the time.
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