BofA bonus: Employees to receive $1,820

/ Source: The Associated Press

Bank of America Corp. said Tuesday that thousands of employees will receive bonuses of up to $1,820 over the next few months as a reward for the Charlotte-based bank’s 2006 financial performance.

Under its “Rewarding Success” bonus program, the nation’s No. 2 bank promised $500 if net income before merger and restructuring costs beat a minimum target of $20.5 billion, bank spokeswoman Kelly Sapp said.

The promised sums went higher if the company made more money. The award also increased if the company’s stock price closed at least 8 percent or higher on the last trading day of the year.

On Tuesday, Bank of America announced that its 2006 net income before merger and restructuring costs was $21.6 billion. The company’s stock price climbed nearly 16 percent over the year.

The combination of the two results yield an award of up to $1,820, Sapp said.

The award will be paid to eligible full-time and part-time Bank of America associates who earned less than $100,000 during 2006. Most of them are in the United States. Part-time employees or those hired during the year will receive slightly different bonuses, Sapp said.

Employees working abroad are also able to participate in the program, but award amounts may vary depending on the country.

The bank will spend about $237 million on the awards, which it will pay out in late February or early March. Last year, Bank of America paid a maximum bonus of $1,175 to more than 140,000 employees.