Bank of America Equity FAQ

Bank of America uses different vesting schedules depending on the award type. Most general employee RSUs vest ratably over three years annually, while certain executive grants vest over four years at 25% per year. RSUs typically vest on February 15th each year, and dividend equivalents are credited with interest until the payment date.

Bank of America's ESPP allows you to purchase company stock at a 15% discount with a lookback feature, meaning you get the discount from the lower of the price at the beginning or end of the offering period. You can contribute up to 5% of your eligible compensation, with a maximum annual contribution of $25,000.

While you generally can sell shares after vesting, you must comply with all securities laws and Bank of America's Code of Conduct, including restrictions on hedging and derivative transactions. There may be blackout periods around earnings announcements or other material events. Bank of America offers 10b5-1 trading plans that allow you to set up predetermined selling schedules.

When your RSUs vest, the full value is treated as ordinary income and subject to federal, state, and local taxes. Bank of America withholds 22% by default for federal taxes, though you can adjust this rate. You should consult a tax advisor to ensure adequate withholding, as 22% may not cover your full tax liability depending on your total income.

To receive favorable tax treatment on ESPP shares, you must hold them for more than one year after the purchase date AND more than two years after the offering date. If you meet both requirements, a portion of your gain may be taxed as long-term capital gains rather than ordinary income, potentially reducing your tax liability.

Your unvested RSUs are generally forfeited when you leave the company. Additionally, RSU awards are subject to non-solicitation and detrimental conduct covenants, meaning certain behaviors after departure could impact your awards. It's important to review your specific grant agreements to understand any post-termination restrictions or exceptions.

Yes, your equity awards are subject to Bank of America's Incentive Compensation Recoupment Policy and clawback rules under Dodd-Frank Rule 954. The company may delay payment or recover awards if there's a conduct review or investigation, or if compensation was erroneously awarded. Awards can also be forfeited for detrimental conduct or violation of non-solicitation agreements.

The Sharing Success Program is Bank of America's broad-based RSU program that covers approximately 97% of the workforce. Under this program, eligible employees receive annual RSU grants ranging from 65 to 600 units, depending on their role and compensation level. This demonstrates the company's commitment to sharing success with employees across all levels.