Bank of America is dividing $1 billion in previously restricted stock amongst nearly its entire staff in an effort to recruit and retain employees during what has been dubbed the “Great Resignation.”
According to CNN, employees who make up to $100,000 will receive a minimum of an estimated $2,900 in BofA stock. These employees previously received $750 cash bonuses. Employees who make up to $500,000 will get more stock, based on their compensation, up to around $27,000 in stock.
Overall, BofA says about 97% of its workforce will be part of the distribution – only a small number of overseas and part-time workers will receive traditional cash bonuses instead.
BofA is hoping that employees will be less likely to quit if it means abandoning valuable stock. "We are in the middle of this Great Resignation," said Brian Kropp, Chief of HR Research at Gartner, an economic analysis firm. "Restricted stock creates a long-term retention hook rather than just a cash bonus."
Nationwide, millions of employees have left their jobs every month, according to federal data. BofA hopes that the stock distribution, along with increased minimum wages and the company’s financial strength, will help it combat that trend.
