Magazine article American Banker

More Banks Spreading the Wealth after Trump Signs Tax Bill

Magazine article American Banker

More Banks Spreading the Wealth after Trump Signs Tax Bill

Article excerpt

Byline: Andy Peters

Five more banks are planning to use the anticipated savings from the reduction in the corporate tax rate to boost wages for employees.

Bank of America, PNC Financial Services Group, Associated Banc-Corp, Texas Capital Bank and Pinnacle Bancorp announced late Thursday or early Friday that they will pay one-time bonuses of $500 to $1,000 to many of their employees. PNC and Associated have also vowed to raise their minimum wage to $15 an hour.

President Donald Trump signed the Republican tax bill on Friday. It cuts the corporate rate to 21% from 35%.

Immediately after Congress approved the bill, Wells Fargo and Fifth Third Bancorp announced pay raises or one-time bonus payments to workers. Other banks followed suit, including Washington Federal in Seattle, with the stipulation that the raises will go to employees who make less than $100,000 per year.

Bank of America will give one-time bonuses of $1,000 to employees who earn salaries of less than $150,000, the Wall Street Journal reported, citing an internal memo. About 145,000 employees will get the bonus. A company spokesman confirmed the memo.

In February, Bank of America raised its minimum hourly pay rate to $13.50 from $15, the spokesman said.

PNC said on Friday that it will raise its minimum hourly pay rate to $15 by the end of next year, "accelerating the goal that has been underway for some time." The Pittsburgh company will also pay a one-time bonus of $1,000 to about 47,500 employees during the first quarter, and it will contribute an additional $1,500 to the pension plans of eligible employees. …

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