Form 4: Bank of America Director Denise L. Ramos Reports Acquisition of Phantom Stock Units

Director Denise L. Ramos reports acquisition of Bank of America phantom stock units as part of director compensation and dividend reinvestment.

Summary

• On April 24, 2024, Denise L. Ramos, a director of Bank of America Corporation, reported the acquisition of 7,045.93 phantom stock units.
• These units were acquired as payment of annual compensation for services as a director under the Bank of America Corporation Director Deferral Plan.
• The transactions are exempt under Rule 16b-3.
• Additionally, 1,805.25 phantom stock units were acquired through dividend reinvestment transactions under the same plan.
• Following these transactions, Ramos beneficially owns 68,576.41 phantom stock units.
• Each phantom stock unit is the economic equivalent of one share of Bank of America Corporation common stock and may be settled in cash upon death or termination of service as a director.

Sentiment

Score: 7

Explanation: The document reflects standard director compensation practices, indicating stability and alignment of interests. It is a neutral to slightly positive event.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• Dividend reinvestment indicates a long-term commitment to the company.

Future Outlook

The director's holdings will fluctuate with future compensation and dividend reinvestment.

Industry Context

Director compensation in the form of stock and phantom stock is a common practice in the financial industry to align management's interests with shareholders'.

Comparison to Industry Standards

• Director compensation packages vary across the financial industry, but equity-based compensation is a common component.
• Companies like JPMorgan Chase, Citigroup, and Wells Fargo also utilize stock options, restricted stock, and deferred stock units as part of their director compensation plans.
• The specific amounts and terms of these plans depend on factors such as company size, performance, and industry benchmarks.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.

Key Dates