Banks Announce Wage Hikes, Charitable Contributions after Tax Reform Bill Passes

As the tax bill successfully passed Congress today, several companies—including banks of all sizes—announced plans to increase employee compensation and charitable contributions as a result of the significant tax cut corporations will receive under the new law.

Fifth Third Bancorp announced that it will raise the hourly minimum wage to $15 for all employees, and will also pay out a one-time bonus of $1,000 to approximately 13,500 of its employees, senior managers and executives excluded. Wells Fargo also pledged to hike minimum wages to $15 per hour, and said it plans to target $400 million in philanthropic donations in 2018.  And ABA Chairman Ken Burgess announced that his bank, FirstCapital Bank of Texas, a $1 billion institution headquartered in Midland, Texas, will pay a $500 bonus to 197 bank employees before the end of the year.

A handful of other corporations, including AT&T and Boeing, also announced similar compensation plans and planned charitable contributions as a result of tax reform. ABA will continue to highlight the ways in which banks are putting their tax savings to work to help their employees and local communities thrive.