Several companies announced Thursday their intent to raise the minimum wage for employees after President Donald Trump signed the tax bill into law, and now, following the law’s passage, two more financial institutions joined the ranks.
Trump officially signed his tax reform bill into law Friday in a private party in the Oval Office.
Among other changes, the law brings the corporate tax rate down from 35% to 21%, the first decrease in 15 years.
To celebrate, several companies, including three more financial institutions, announced they would share the cut by raising wages for their employees. Read about the first two banks to announce their plans here.
BB&T Corp. announced it will raise its hourly pay rate from $12 to $15 per hour, effective January 1, 2018. It will also provide a one-time $1,200 bonus to be paid out in January for about 75% of its associates. However, the bonuses do not apply to senior leaders or the executive management team.
The bank also announced it will give back to the community by donating $100 million to its philanthropic fund to support charitable organizations.
“By far and away, our associates are our most important asset,” BB&T Chairman and CEO Kelly King said. “They're the biggest reason we're able to serve our clients each and every day in an extraordinary way.”
“They've worked so hard, especially over the last few years, to position BB&T for continued success,” King said. “So, I'm delighted to reward them for all of their hard work and dedication.”
PNC Financial Services Group also announced it was raising its rates to $15 per hour by the end of 2018. The company will also add an additional $1,500 to the existing pension accounts and provide a $1,000 cash payment to about 47,500 of its employees during the first quarter of 2018.
This will impact all employees below a certain compensation band, representing approximately 90% of PNC employees.
“The tax reform law creates an opportunity to reward our employees who are working hard each day to serve our customers, build strong relationships in our communities and create long-term value for our shareholders,” said William Demchak, PNC chairman, president and CEO. “The Board's decision to recognize our employees and support our communities is reflective of our commitment to PNC's success.”
And word on the street is that Bank of America is also giving back to its employees because of the bill's passage.
In an internal memo sent to the bank's employees, it explained it had already raised its minimum wage to $15 per hour in February, but it would still be giving its employees each a $1,000 bonus by the end of 2018, according to an article by Fred Imbert for CNBC.
From the article:
"Beginning in 2018, we will see benefits from the tax reform ... in the form of lower corporate tax rates," CEO Brian Moynihan said in an internal memo to employees obtained by CNBC. He also said that about 145,000 employees will receive the bonus.