Bank of America’s employees will get bonuses for 2008, so long as they aren’t amongst the top 20 or 30 executives, of course.
How will the company pay out the bonus? In a convoluted manner that will dole out the cash over the next three years. The first payments go out next month.
Wealth Bulletin: Bonus pay, which was down on average about 80%, will be paid through a series of deferred vesting periods with staff set to receive the first 6% of the cash payout next month, followed by a set of subsequent cash payments over the next three years, Financial News has learned.
70 per cent of the Bank of America bonus pool is being placed into a new plan called Additional Principal Programme, the first third of which will be paid out through a series of quarterly payments this year, followed by a second and third payout in February 2011 and February 2012.
The remaining 30% will be paid through an Equity Deferral Plan, which will be decided on sliding scale depending on an individuals total pay. The first vest from this pool will be next February, with staff receiving a third of their stock, this will be followed by two further vests in 2011 and 2012.
Ken Lewis No Fan Of Pay Caps