BoA to pay 4.4 billion dollars of bonus
The US administration is unable to stop the payment of 4.4 billion dollars of bonus by the bailed out bank major , Bank of America. The company has been on the verge of collapse last year, which was avoided only by taking billions of dollars of taxpayers’ money as life line.
Now the bank says that the bonus payments are required to keep the work force intact and the average works out to only 4,00,000 dollars per employee. And over 90% of the payment is planned to be made in stock vesting over three years. That could help the bank in saving cash for future use, but would also be diluting the earnings per share.
