Stock-based Compensation Plans
|12 Months Ended|
Dec. 31, 2019
|Share-based Payment Arrangement [Abstract]|
|Stock-based Compensation Plans||
Stock-based Compensation Plans
The Corporation administers a number of equity compensation plans, with awards being granted predominantly from the Bank of America Key Employee Equity Plan (KEEP). On April 24, 2019, Bank of America's shareholders approved an amendment to the KEEP to increase the number of shares available for grant by 150 million. Subsequent to this amendment, 600 million shares of the Corporation’s common stock are authorized to be used for grants of awards.
During 2019 and 2018, the Corporation granted 94 million and 71 million RSU awards to certain employees under the KEEP. These RSUs were authorized to settle predominantly in shares of common stock of the Corporation. Certain RSUs will be settled in cash or contain settlement provisions that subject these awards to variable accounting whereby compensation expense is adjusted to fair value based on changes in the share price of the Corporation’s common stock up to the settlement date. Of the RSUs granted in 2019 and 2018, 71 million and 63 million will vest predominantly over three years with most vesting occurring in one-third increments on each of the first three anniversaries of the grant date provided that the employee remains continuously employed with the Corporation during that time, and will be expensed ratably over the vesting period, net of estimated forfeitures, for non-retirement eligible employees based on the grant-date fair value of the shares. For RSUs granted to employees who are retirement eligible, the awards are deemed authorized as of the beginning of the year preceding the grant date when the incentive award plans are generally approved. As a result, the estimated value is expensed ratably over the year preceding the grant date. Additionally, 23 million and eight million of the RSUs granted in 2019 and 2018 will vest predominantly over four years with most vesting occurring in one-fourth increments on each of the first four
anniversaries of the grant date provided that the employee remains continuously employed with the Corporation during that time, and will be expensed ratably over the vesting period, net of estimated forfeitures, based on the grant-date fair value of the shares.
The compensation cost for the stock-based plans was $2.1 billion, $1.8 billion and $2.2 billion and the related income tax benefit was $511 million, $433 million and $829 million for 2019, 2018 and 2017, respectively.
The table below presents the status at December 31, 2019 of the share-settled restricted stock/units and changes during 2019.
The table below presents the status at December 31, 2019 of the cash-settled RSUs and changes during 2019.
At December 31, 2019, there was an estimated $1.6 billion of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to four years, with a weighted-average period of 2.2 years. The total fair value of restricted stock vested in 2019, 2018 and 2017 was $2.6 billion, $2.3 billion and $1.3 billion, respectively. In 2019, 2018 and 2017, the amount of cash paid to settle equity-based awards for all equity compensation plans was $84 million, $1.3 billion and $1.9 billion, respectively.
The entire disclosure for share-based payment arrangement.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef