When an employee receives shares of BOA stock as part of their yearly compensation, is that based on their band or salary? I always thought it depended on your band but a comment in another thread makes me think otherwise. Just curious if anyone knows for sure
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Incentive RSUs are not determined (at least not directly) by your Band.
incentive RSUs are part of your Total Comp. (= Salary + Incentive Pay). You may be "eligible" for more at a higher band, but the larger driver is how well the company performs.
Incentive Pay may include cash and/or RSUs. (this is different - and in addition to - Shared Success RSUs.)
Depending how the balance sheet and stock price are looking -- and the current tax laws and accounting rules -- the overall pool may be more cash OR more RSUs. (One year when it was more advantageous for the company, the bonus was all cash, no incentive RSUs that year. Bonuses were way down, so they thought giving people immediate cash would lessen the pain.)
The Incentive ("bonus") is determined by how well the company does overall, which funds the Incentive Pool. (Bank outperforms = pool is fully funded. Bank does not meet its financial goals, then pool is reduced by XX%.)
When the Bank does well, the Comp team (part of HR) tells LOB heads, "your portion of the overall pool is up X%". Note: this is not equal across all groups. If one product area kicks a$$, then they will get allotted more from the overall pool, while another group that does not meet its goals, will be decreased.
This trickles down thru the management layers to your manager, who is informed that their portion of the pool for your team is up/down x%.
It is then up to your manager how they allocate their pot across their team. (If you are a pet, they will try to keep you "whole" (level YoY) in the bad years, or not reduce you as much as others. Managers have been know to give some people a Goose Egg (zero) to cover their best producers.
To sum, Incentive RSUs are essentially based on how many you received last year, up or down depending on how the company does and whether it is to their advantage to pay a higher cash or RSU portion.
The one thing you can count on (around here at least) is that the overall amount will be down more years than up!
Shared Success RSUs are based on BAND.
But several bands are lumped together. (Maybe someone else on this board recalls the breakouts on number of shares...)
There are other RSUs that are part of yearend incentive/performance bonus that are based on total comp.
Based on band. I got more in a band 6 then friends who were a band 7 when this all initiated last March
supposedly people who make over 50k recieve 80 shares. Those under 60 or 65. People who make over 75k cash and stock.
Are you talking about 75k bonus? I know my manager gets some BOA shares every February and there is no way she gets a 75k bonus. I would be shocked if she did. She was actually complaining about her 2% raise the other day so I doubt she gets a 75k bonus.
incentive over 75k is split between cash and stock
based on total compensation (salary + bonus)