SAN FRANCISCO — Following President Trump’s signing of a new tax bill to lower the corporate tax rate, the banking giant Wells Fargo & Company plans a pay raise for its lowest employees and investments in communities, small businesses, and homeownership.
The company said it would make the following:
- Raising the minimum hourly pay rate for its team members to $15 per hour.
- Targeting $400 million in donations to community and nonprofit organizations in 2018. The company also announced that beginning in 2019, it will target 2 percent of its after-tax profits for corporate philanthropy.
- As part of this expanded philanthropy, targeting $100 million in capital and other resources over the next three years to support the growth of diverse small businesses and $75 million in 2018 to its NeighborhoodLIFT program, an innovative public-private collaboration focused on sustainable homeownership and neighborhood revitalization.
“We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners,” said President and CEO Tim Sloan. “We look forward to identifying additional opportunities for Wells Fargo to invest, as we continue to execute our business strategies and provide long-term value to all our stakeholders. As the nation’s largest small business lender and residential mortgage provider, we understand our significant role in helping grow the economy.”
The company’s increased minimum hourly pay rate of $15 for U.S.-based team members goes into effect in March 2018. The new rate is an 11 percent increase to the current minimum hourly rate of $13.50 that the company announced in January 2017.
“We’re ensuring that Wells Fargo is a great place to work by offering market-competitive compensation, career development opportunities, and a broad array of benefits,” Sloan said. “In addition to today’s announcement, over the past year we have added four additional paid holidays per year; enhanced our parental, caregiving, and backup adult care paid leave programs; and announced plans to grant restricted stock awards to approximately 250,000 team members that will vest in two years subject to grant terms. These awards are generally equivalent to 50 shares of Wells Fargo stock for eligible full-time team members and 30 shares for eligible part-time team members.”
Wells Fargo is one of the nation’s largest banks with $1.9 trillion in assets, more than 8,400 locations, 13,000 ATMs, and offices in 42 countries and territories. The company has 268,000 employees.