Late last month, after President Donald Trump signed the tax reform bill into law, several large financial institutions announced that they planned to raise employee wages and make other investments thanks to the law reducing the corporate tax rate down from 35% to 21%.
Included among that list are BB&T Corp., Bank of America, PNC Financial Services, Wells Fargo, Fifth Third Bancorp, and more.
On Tuesday, U.S. Bank became the latest bank to take similar action in the wake of the tax bill’s passage.
U.S. Bancorp, the parent company of U.S. Bank announced Tuesday that it is handing out a $1,000 bonus to nearly 60,000 employees. The bank also plans to increase its minimum wage for all hourly employees to $15 per hour.
Additionally, the bank will be making “enhancements” to its employees’ health care options, effective for the 2019 enrollment period.
“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers,” Andy Cecere, president and chief executive officer, U.S. Bancorp, said.
“We are proud of our people and their commitment to our customers and communities,” Cecere added. “We felt it was important to reward their hard work and dedication with this special bonus, the minimum wage increase and the health care enhancements.”
The bank also said that it plans to make an “additional investment in strategic projects centered on the customer experience with an emphasis on digital and mobile capabilities.” Included among those projects: payments technology, digital banking capabilities, multi-cultural initiatives, back-office automation and brand building.
The bank also said that it will be making a $150 million contribution to the U.S. Bank Foundation, the bank’s charitable arm.
“Our one-time $150 million contribution to the U.S. Bank Foundation reflects a long-term expansion in our ability to invest in and revitalize our communities for years to come,” Cecere said. “We know how important it is to everyone at U.S. Bank that we strengthen our neighborhoods and communities with our time and financial resources. It is a privilege to make this decision to benefit our communities.”