Bank of America is expected to hand out thousands of employee bonuses of up to $1,820 each, following a net income rise of 28 percent in 2006. The bank promised the bonuses with assumptions of a strong performance throughout the year and a rise in the share price. The share price rose 16 percent in 2006.
All full-time of part-time employees of Bank of America that were paid less than $100,000 during 2006 will get a portion of the bonus, according to the Associated Press. Exact amounts are on an individual basis.
The bonuses are expected to set the bank back an estimated $237 million. Plus the bank plans to purchase up to 200 million shares of common stock, which will cost up to $14 billion in the next 12 to 18 months.