For employees of Dollar Bank in Pittsburgh, being late to the game may be worth it in this case.
Four months after most banks moved to give employees some of the anticipated savings from the Tax Cuts and Jobs Act, the $8.3 billion-asset Dollar is giving workers with annual salaries at or below $60,000 a $2,000 raise. About 60% of Dollar’s 1,300-person workforce will get raises, Senior Vice President Joseph B. Smith said Monday.
CEO Jim McQuade announced the raises May 2 in an in-house video message. They went into effect May 1.
In the first few weeks after the tax overhaul, signed into law by President Trump Dec. 22, a number of banks, including Bank of America, BB&T, Fifth Third and PNC, were quick to announce one-time bonuses for many workers and in some cases compensation enhancements for hourly workers.
Dollar increased the match it provides to employees’ 401(k) contributions in January, but it held off on a pay adjustment looking for a more meaningful and long-lasting gesture.
“When Congress passed a new lower corporate tax rate, we took time to evaluate how this would impact Dollar Bank finances and how we could provide a benefit to employees that was not limited to a one-time bonus,” McQuade said. “We determined a permanent $2,000 salary increase to all eligible employees with salaries at or below $60,000 was the best way to proceed and would positively impact the largest number of Dollar Bank employees while maintaining the bank’s fiscal responsibility.”
Founded in 1863, Dollar is the nation’s second-largest depositor-owned bank. Last week, it announced plans to form a mutual holding company in large part to make easier to acquire other banks.
“As you can imagine, the response [to McQuade’s announcement] was one of great excitement an appreciation,” Smith said.