Form 4: Bank of America Executive Dean Athanasia Reports Acquisition of Restricted Stock Units

Dean C. Athanasia, President of Regional Banking at Bank of America, reports the acquisition of performance and time-based restricted stock units.

Summary

• Dean C. Athanasia, a Bank of America officer, filed a Form 4 on February 14, 2025, reporting transactions related to Bank of America Corporation common stock.
• The report details the acquisition of performance-based restricted stock units (PRSUs) and time-based restricted stock units (RSUs) under the Bank of America Corporation Equity Plan.
• Athanasia acquired 127,110 performance-based RSUs, which are subject to the company's three-year average return on assets and growth in adjusted tangible book value from January 1, 2025, to December 31, 2027.
• The actual award for the PRSUs will be settled in shares on March 1, 2028, and may range from 0% to 100% of the maximum, depending on performance goal satisfaction.
• Athanasia also acquired 63,555 RSUs that vest in four equal annual installments commencing February 15, 2026, and will be settled in shares.
• Additionally, 63,555 RSUs were acquired that vest in four equal annual installments commencing February 15, 2026, and will be settled in cash.
• Following these transactions, Athanasia directly owns 442,647 shares of Bank of America common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance. The sentiment is neutral to positive.

Positives

• The acquisition of restricted stock units aligns the executive's interests with the long-term performance of the company.
• The vesting schedule of the RSUs encourages continued service and commitment from the executive.

Risks

• The value of the performance-based restricted stock units is contingent on the company achieving specific financial performance goals, which may not be met.
• The value of the restricted stock units is subject to the market price of Bank of America common stock, which can fluctuate.

Future Outlook

The actual number of shares received from the performance-based restricted stock units will depend on the company's performance between January 1, 2025, and December 31, 2027, and will be settled on March 1, 2028.

Industry Context

Executive compensation through equity grants is a common practice in the financial industry to align management's interests with those of shareholders.

Comparison to Industry Standards

• Bank of America's equity compensation practices are generally in line with those of its peers, such as JPMorgan Chase & Co. and Citigroup, which also utilize restricted stock units and performance-based awards.
• The specific performance metrics used, such as return on assets and tangible book value growth, are common indicators of financial performance in the banking sector.

Stakeholder Impact

• The equity grants align the executive's interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.
• The vesting schedule encourages continued service and commitment from the executive, which can benefit employees and other stakeholders.

Next Steps

• The performance goals for the PRSUs will be evaluated at the end of the performance period (December 31, 2027).
• The PRSUs will be settled in shares on March 1, 2028, based on the achievement of the performance goals.
• The RSUs will vest in four equal annual installments commencing February 15, 2026.

Key Dates

Keywords

Form 4, Bank of America, Dean Athanasia, Restricted Stock Units, Performance-Based RSUs, Equity Plan, Beneficial Ownership, Officer, Regional Banking