Bank becomes latest company to announce perk since legislation passed
Bank of America Corp. is giving $1,000 bonuses tied to the tax-overhaul bill to more than half of its 210,000 employees, making the bank the latest company to announce such a perk since the legislation passed this week.
By the end of the year, the Charlotte, N.C.-based bank BAC, -0.40% plans to give the one-time bonuses to employees who earn up to $150,000 a year in total compensation, according to an internal memo from Chief Executive Brian Moynihan viewed by The Wall Street Journal. About 145,000 employees will get the perk, the memo said.
The tax legislation, signed by President Donald Trump on Friday, includes a large cut in the corporate-tax rate, which is expected to significantly boost corporate profits, especially for banks. Telecoms and banks are among those expected to get a huge boost from the overhaul since most of their operations are domestic and they pay higher effective rates than firms in sectors such as pharmaceuticals or technology which have intellectual property or operations outside the country.
AT&T Inc. T, -0.03% and Comcast Corp. CMCSA, -0.20% said they would pay a $1,000 bonus to most of their U.S. workers—more than 300,000 people combined—once the president signs the legislation. Large lenders Wells Fargo & Co.WFC, -0.41% and Fifth Third Bancorp FITB, -0.61% said they would raise their minimum wage to $15 an hour, a minimum wage that Bank of America already pays its employees. Fifth Third also announced plans for a one-time $1,000 bonus for more than 13,500 of its 18,000 employees. Another smaller bank, Western Alliance Bancorp., also plans to raise pay and improve benefits.