Wells Fargo & Co. and Fifth Third Bancorp both announced an increase in the minimum hourly wage for bank employees to $15 per hour, citing the passage of Republicans' tax reform legislation.
Fifth Third stated that it would distribute a one-time bonus of $1,000 to more than 13,500 employees in addition to the increase in minimum wage. The bank estimated that roughly 75% of its employees would receive a pay increase or bonus, adding that the cut in corporate tax rates allowed a reassessment of the bank's compensation structure. The Republican tax bill will reduce the statutory corporate tax rate to 21% from 35%.
Wells Fargo announced an increase in philanthropy in addition to the higher minimum wage. The bank plans to spend $400 million in donations to nonprofits and community organizations in 2018, a 40% increase from 2017. The bank also stated that it plans to spend 2% of its after-tax profits on corporate philanthropy starting in 2019.
